A private limited company has certain distinguishing characteristics

To register a private limited company, a minimum of two people are required to act as directors and shareholders. The directors must be natural persons, while the shareholders can be natural persons or corporate entities. In addition, a registered office address in India is also required for company registration.

It must, in its articles of association, restrict the right to transfer shares; the number of members in a private limited company is minimum of 2 and a maximum of 200 members (excluding the present and past employees of the company). Its Articles of Association must prohibit any invitation to the public to subscribe to the securities of the company. As compared to Limited company Private Limited Company has fewer compliances under the Act.