What are the features of a Private Limited Company?

A Private Limited Company, regulated by the Companies Act, 2013 has separate legal entity in the eyes of law. A separate legal entity means that the corporate body or business has a separate existence apart from its directors or shareholders.

  • It has a separate legal entity.
  • It has perpetual succession i.e. the company does not cease to exist on death of any or all of the members.
  • The members or shareholders do not have a personal liability to discharge debts.
  • The directors are responsible for the everyday business of the company.
  • Easy transferability of ownership.
  • Shares of such company cannot be floated to general public.
  • A minimum number of two directors is required for registering the private limited company. One of the directors must be a resident of India.
  • Mandatory to have a registered office address for all official communications.

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