Private Limited Company

Private Limited Company can be created with the association of 2 or more directors the upper limit of which is set up at 15 directors. It can have minimum 2 and maximum 200 members, however, the persons, holding the membership, who are or were in employment of the company, shall not come under such counting. Since it is the Primary requirement of growing business to have funding, Unlike Proprietorships, partnership firms, and Limited Liability Partnerships cannot issue shares, Private Limited Company is able to attract equity funding by issuing equity among the limited number of persons, except by the way of issuing prospectus. It can be started even with the paid up capital of 1,00,000/-  Rs. However, it’s not a mandatory requirement to employ this much capital due to the evasion made by law for the same but its recommendatory requirement that one should bring at least this much capital with oneself.It also enables new business to attract a capital share from sources like Family, friends, Venture Capitalist, Angel Investor or private equity firm.