Rubikashah10 Sep, 2020Business
A private limited company is a business entity registered under the Companies Act, 2013 and owned and managed by a group of members known as shareholders. The characteristics of a private limited company include: Ownership: The shareholders are the owners of a private company. Number of members: A private limited company can register with a minimum of 2 and maximum of 200 members. Number of Directors: A private company must appoint at least 2 directors. Cannot accept deposits: A private limited company cannot approach the public for loans or deposits. Limited Liability: In a private limited company, every shareholder’s liability is limited to the value of shares he has subscribed for. Separate legal entity: A private limited company is a separate legal entity whose existence is independent of the shareholders or directors. Non-transferability of shares: Shareholders are not allowed to transfer shares.
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