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What are the characteristics of a private limited company?

Member: There can be or must be two (2) initially and can be extended to two hundred (200) as it grows.

Limited liability: Each director and shareholder will have to bare the loss when the company faces it. This means that when the loss is minimal or maximum the shareholders are also supposed to pay for the loss by selling or pledging their own belongings. 

Perpetual Succession: the company exists at any point in the eyes of the law like it can be any death, insolvency, bankruptcy or anything. 

Index of member: no requirement to main index of the company in the private sector while in the public sector it has to maintain. 

Number of directors: it can start two 

Paid initial capital: a minimum of 1 lakh rupees or more is very essential and can be increased from time to time

Prospectus: Detailed prospectus is essential to start a company 

Subscription: no subscription is required to receive share in private limited firms. 

Name: unique, mandatory to use following naming, must abide to terms and conditions

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