Meaning ?

Private Limited Company is the most favored form of business entity in India having perpetual succession with least of two directors & shareholders, the maximum being 15 and 50 respectively, is a must for company registration. There is no minimum paid up capital required to start the company, it is very convenient to organize and operate a private limited company as business can be commenced immediately. Also, it improves business credibility thus, enhancing the future growth of the company.

Many start-ups and companies consider this form of business entity as it permits capital funding to be raised easily; it also limits the liability protection to its shareholders and enables them to offer employee stock options to motivate their employees.  Availability through a bank loan, equity or debt funding makes private limited company, the most recommended legal structure of many small and medium sized business entities that are family owned or professionally run in India.