A Private Limited Company is a business structure in India where ownership is divided among shareholders, and the company is registered under the Companies Act, 2013. It enjoys separate legal status and limited liability for its shareholders.

A Private Limited Company can be started by a minimum of two shareholders and two directors. The directors can also be shareholders. There’s no maximum limit on the number of shareholders, but the number of members cannot exceed 200.

A Private Limited Company provides limited liability protection to its shareholders, separate legal entity status, easy access to funding, higher credibility, and the ability to offer employee stock options.

A Private Limited Company is taxed at a flat rate of 25% (if the turnover is less than ₹400 crore), along with applicable surcharge and cess. Tax planning and benefits such as deductions can be applied to reduce the taxable income.