Private Limited

“Pvt Ltd” stands for “Private Limited,” a term commonly used in many countries, especially in India, to denote a privately held company. A Private Limited Company (Pvt Ltd) is a type of business entity that limits the number of shareholders and restricts the transfer of shares. It offers limited liability protection to its shareholders, meaning their personal assets are not at risk for the company’s debts or liabilities.

Key features of a Pvt Ltd company include:

1. Limited liability – Shareholders’ liability is limited to the amount they have invested in the company.
2. Ownership restrictions – The company can have a maximum number of shareholders (typically 50), and shares cannot be publicly traded.
3. Separate legal entity – The company is a separate legal entity from its owners, meaning it can own property, sue, and be sued in its name.
4. Minimum number of directors – Typically, a Pvt Ltd company must have at least two directors.
5. Compliance requirements – The company must adhere to regulatory and financial reporting requirements, such as filing annual returns and financial statements.