Overview
A Private Limited Company (Pvt Ltd) is a popular business structure in India, offering a balance of flexibility and corporate credibility. It is a separate legal entity distinct from its shareholders, ensuring that personal assets are protected in case of financial liabilities. Governed by the Companies Act, 2013, a Pvt Ltd company requires a minimum of two directors and two shareholders, with a cap of 200 shareholders.
One of its key advantages is limited liability protection , meaning shareholders are liable only to the extent of their shareholding. The company enjoys perpetual succession, ensuring that its existence is not affected by changes in ownership. Foreign Direct Investment (FDI) is permitted in a private limited company, making it an attractive option for businesses looking to expand globally.