A private limited company represents a privately held corporate structure highly regarded as one of the most preferred business models in India, as outlined by the Companies Act of 2013 and the 2014 incorporation regulations. It operates under the ownership and management of a compact group of private investors and shareholders.
To establish a private limited company, it is mandatory to have a minimum of two proprietors or shareholders, and the structure can include multiple directors. The financial liability of the company is limited to the extent of shares held by its members. The responsibility to recover business losses is contingent upon the proportion of shares owned by individual members.
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Private Limited Company is the most prevalent and popular type of corporate legal entity in India. Private limited company registration is governed by the Companies Act, 2013 and the Companies Incorporation Rules, 2014. To register a private limited company, a minimum of two shareholders and two directors are required.
