About Private limited company registration

Private limited company is the most popular and comprehensive type of legal entity in India. Private limited company certification is governed by the Ministry of Business, Companies Act, 2013 and the Companies Incorporation Rules, 2014. To register a private limited company, a minimum of two directors and two shareholders are required. A natural person can be both a shareholder and a director, whereas under corporate law a company can only be a shareholder. NRIs may be shareholders and / or directors of an external direct investment firm, making it the preferred entity for foreign promoters. A type of company that provides legal protection, or limited liability, to its shareholders, but imposes some restrictions on its ownership. These terms are defined in the company's rules or regulations and are intended to prevent hostile takeover attempts.
The unique features of a private limited company such as limited liability protection for shareholders, separate legal entity status, ability to raise capital and sustainable existence make it a recommended type of work unit for millions of small and medium-sized businesses that are family-owned. Or professionally managed.