A private limited company is a company that is privately owned by a group of people. The member's liability is limited to the number of shares they own in the company. However, the shares of a private limited company cannot be traded publicly.

In India, a private limited company is a common business structure. It can be formed with as few as two members and two directors. The maximum number of members, however, is 200. It is the most recommended business structure for millions of professionally managed or family-owned small and medium-sized businesses.