Private Limited Company is defined as a company that is privately held for small businesses. It is the most common type of business and has less formalities when compared to other legal entities. The Companies Act 2013 and the Companies Incorporation Rules 2014, gives the regulations for the private limited company in India. In a Private limited Company the liability of the members is limited to the amount of shares that is respectively held by them. The Private limited company can come into operation only if it contains two Directors. Also the shares of Private limited company cannot be publicly traded.