Private companies are governed under section 2 (68) of the Companies Act, 2013. It is the most favoured and popular entity type in India.

Sec 2 (68) defines private company as the one which by its articles:

  1. Restricts the right to transfer its shares
  2. Limits the number of its members to 200
  3. Prohibits invitation to the public to subscribe for its shares

 

A Private Limited Company must have a minimum 2 Directors, one of whom should be an Indian Citizen and Resident in India. Maximum limit of directors in a private company is 15. However, the company can have more than 15 directors after passing a Special Resolution in the General Meeting.

Private companies are governed under section 2 (68) of the Companies Act, 2013. It is the most favoured and popular entity type in India.

Sec 2 (68) defines private company as the one which by its articles:

  1. Restricts the right to transfer its shares
  2. Limits the number of its members to 200
  3. Prohibits invitation to the public to subscribe for its shares

 

A Private Limited Company must have a minimum 2 Directors, one of whom should be an Indian Citizen and Resident in India. Maximum limit of directors in a private company is 15. However, the company can have more than 15 directors after passing a Special Resolution in the General Meeting.