Private company is the most preferred form of business. Private company can be form by two persons. Private Limited Companies are those companies which are privately held by the people. Minimum of 2 and maximum 200 members are required in Private Limited Company a private limited company has very benefit of a partnership like flexibility, greater capital contribution etc combined with limited liability, greater stability and legal entity.


1. It can be started with minimum paid-up capital of Rs. 0

2. The minimum two directors is required to incorporate

3. Transfer of share can be restricted as per Articles of the company.

4. It can take loan from shareholders, directors and relatives of directors but not from the public.

5. The company has a separate legal entity

6. Private limited companies enjoy tax advantages. These companies pay corporation tax on their taxable profits and tend to be exempt from higher personal income tax rates.