- Minimum 7 members are required to form the Board of Directors
- The Company is a Separate Legal Entity means an ‘Artificial Judicial Person’
- Authorized Share Capital should be minimum of Rs. 1,00,000/-
- DIN and Digital Signature Certificate for the member is essential
- The Company can be listed on a stock exchange
- No Limits on number of Share Holders
- Appointment of Managing Director is compulsory
Key features of a Private Limited Company
- It is a Separate Legal Entity and enjoys wide legal capacity
- It can own a property, incur debts, raise funds, etc…
- The members have no liability to the creditors for such debts
- The Company is not affected by death or unsoundness, unlike humans. Thus, it is having an uninterrupted existence until it gets dissolved. It remains to live irrespective of changes in its membership
- A Company can borrow funds from markets and financial institutions. It can raise funds through issuing debentures (secured / unsecured) and it can also accept deposits from the public. Banking and Financial Institutions rely more on corporate entity rather than Partnership and Proprietorship concerns to grant financial assistance.
- Shares of the Company can easily be transferred to any other person.
- Members’ liability towards the company is limited to a number of shares held with them. This means they are legally responsible for the debts of a company limited by a number of shares held by them.