A Private Limited Company sometimes written in short as Pvt Ltd. is one of the most popular types of business entity in India.
It is formed by a minimum of 2 directors or 2 people. Private Limited Company registration is defined by stating the objectives in Memorandum of Association and Articles of Association.
The business entity can be owned by a group of members called shareholders with a minimum requirement of 2 members or shareholders or subscribers. The maximum number of subscribers for a private limited company is 200. Once exceeding the limit, a private limited company ceases to exist and becomes a public limited company with more stringent compliance requirements.
Typically, Indian startups and businesses with the idea of raising investment and scaling up to reach the sky opt for a Private Limited Company as ownership of the company is defined by shareholders.
Private Limited company gets recognised as a Company through its registration under Companies Act of 2013. The governing body is the Ministry of Corporate Affairs, widely known as MCA, please take a look of the website mca.gov.in