Private limited company

A privately held company or close corporation is a business

company owned either by non-governmental organizations or by a
relatively small number of holders who do not trade the stock
publicly on the stock market

Private Company means a company which by its articles of

association:-
a.  Restricts the right of members to transfer its shares

b.  Limits the number of its members to fifty. In determining this

number of 50, employee-members and ex-employee members are
not to be considered.

c.  Prohibits an invitation to the public to subscribe to any shares in

or the debentures of the company.
If a private company contravenes any of the aforesaid three
provisions, it ceases to be private company and loses all the
exemptions and privileges which a private company is entitled.
 FEATURES

• Membership
• Name
• Commencement of Business
• MOA & AOA
• Prospectus
• Shares
• Transfer of Shares
 PRIVILEGES OF PRIVATE LTD
COMPANY

Sec 3(1)(iii)
Sec 192A
Minimum Sec 220
Passing of
paid-up P & L A/c.
Sec 12(1) resolution
capital of of a Pvt.
Formed by by Postal
Rs. 1 lakh Co. is not
just two Ballot not
as against open for
person. relevant
Rs. 5 lakhs inspection
for Pvt.
for Public by Public.
Co.
Company.
 Cont…….

Sec 252 & 252A Sec 256

Sec 316.317 Sec 165 Minimum Directors A Pvt. Co. need
No restriction Pvt. Co. is for Pvt. Co. is 2 (two) not adopt the
on period of not required against 3 (three) in procedure
appointment to hold case of Public Co. relating to
Requirement of
of managing statutory Independent
appointment,
director/man meeting or Directors or Small retirement, re-
ager for more prepare any Shareholders’ appointment of
than 5 years statutory Directors not directors etc.
at a time. report. applicable to Pvt. applicable to a
Co. public company.