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What is a Private Limited Company in India? Rules & Examples

All over the world, "Company" as a form of business organisation is very popularly adopted. Especially, private limited companies are in large numbers as compared to public limited companies.


Two major benefits of a Private limited company

• As few as 2 shareholders can incorporate and run a private company; and
• The liability of the shareholders is limited to their contribution to the company in the form of share capital.



Minimum and Maximum Number of Members/ Shareholders in a Private Company

Every private company is required to have at least 2(two) shareholders and a maximum of 200(two hundred) shareholders, beyond that it will automatically become a public company.

In the above 200 count, employees and ex-employees (who became shareholders during their employment and continued to be a shareholder after employment) will not be included.


Minimum and Maximum Number of Directors in a Private Company

Every private company is required to have at least 2(two) directors and can have a maximum of 15(fifteen) directors.

Although they can have more than 15 directors by passing a special resolution in the general meeting of shareholders and complying with other formalities.


Examples of Some of the Top Private Limited Companies in India

IBM INDIA PRIVATE LIMITED (CIN: U72200KA1997PTC022382)
ADOBE SYSTEMS INDIA PRIVATE LIMITED (CIN: U99999DL1997PTC088801)
DHL EXPRESS (INDIA) PRIVATE LIMITED (CIN: U64120MH2001PTC131743)
MICROSOFT CORPORATION (INDIA) PVT LTD (CIN: U74899DL1988PTC032549)
GOOGLE INDIA PRIVATE LIMITED (CIN: U72900KA2003PTC033028)


Definition of 'Private company' is prescribed under sub-section (68) of section 2 of the Companies Act, 2013.


Monthly New Private Companies Stats

New stats:

During November, 2019 - out of 10607 Indian companies which were incorporated, 9815 companies were registered as private companies (92.5%).

Chart on UT/State-wise number of total companies incorporated during November, 2019.

State-wise number of total companies incorporated during November 2019
Note: These are approximate figures taken from the data published by MCA site. The above numbers do not include LLPs and Foreign Companies incorporation data.


Old stats:

As of 31st March, 2014 - there were 8,88,430 private companies out of the total active companies in India i.e. 9,52,433. (93% Private Companies out of the total number of companies in India)


During the financial year 2013-14, 95,253 new private companies were incorporated. Highest number of new private companies were incorporated in Maharashtra (17,325) & Delhi (16,502) and in other states viz. Andhra Pradesh (7,093), Gujarat (5,009), Karnataka (5,953), Uttar Pradesh (7,431) & West Bengal (8,976). As you can see, these all states are constituting almost 70% of the new incorporation of private companies.

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