'Limited' means that the financial responsibility of the company is limited to the value of the company's shares that have not been paid for. This means that if a company has one member (shareholder) and they own 20,000 shares each at a value of £1, then they would be liable for £20,000 (if unpaid) at the time of winding up. Perpetual Succession. The private limited companies keep on continuing forever. Its life or continuity is not affected by the life of its members. These companies are created by law & are also dissolved by it. Death, insolvency or bankruptcy of any of its members does not affect the life of the business. The business enjoys perpetual succession. PUBLIC COMPANY: PRIVATE COMPANY: 1. Minimum members: 7: 2: 2. Maximum members: No maximum limit: 200: 3. Commencement of business: They have to obtain with certificate of incorporation , the certificate of commencement: They have to only obtain certificate of incorporation and no certificate of commencement: 4. Minimum subscription: Rs. 500,000: Rs. 100,000: 5. Issue of prospectus Types of Private Companies. 1. Sole proprietorship. A sole proprietorship is a business owned and managed by one person, and the owner bears unlimited personal liability on the debts incurred by the business. All of its assets, liabilities, and obligations are the responsibility of the business owner. If the business goes into debt, the owner In this regard, the study tries to point out the legal and practical problems related with: fully paid up capital, the mandatory legal requirement of the two members in the formation of such company, restrictions of share transfer out side the company, and the limited liability of members who manage a private limited company. 2. The 4 shareholders of Clausen Stock Graphic Design Limited, a. successful company specialising in the design and maintenance of web. sites, are Rupert Clausen, Martin Stock., James Smith and Khurram. Hussain. Khurram, Martin and James are directors and they each hold 30% of the. shares in the company. Its characteristics are similar to that of a corporation and a partnership business. Its dissolution too is governed by the state's law. The Advantages of a Limited Liability Company. An LLC offers the following advantages: You can form a limited liability company with just one member. You can have a whole company as a member of an LLC. Academia.edu - Share research Key characteristics Only professional investors (or very wealthy individuals) can invest in this market Private companies are less heavily regulated Private companies do not have to report on performance It's hard to find information about them Alternative vs. traditional asset classes A Private Limited Company is formed when an association of persons team up for conducting business, possessing a distinct name and having limited liability.A company is a separate legal entity and is different from its members. Here is a brief on some of the major features of a Private Limited Company incorporated in India.. 1. A Private Company is a Separate Legal Entity After you finalize a name for the company, follow the below-mentioned steps: #1: Apply for DSC (Digital Signature Certificate) #2: Apply for the DIN (Director Identification Number) #3: Apply for the name availability. #4: File the EMoa and EAOA to register the private limited company. #5: Apply for the PAN and TAN of the