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Simple meaningA company that restricts share transfers and has at most 200 members.
Relevant ActCompanies Act, 2013
Section / ruleSection 2(68)
Technical meaning
A company which by its articles restricts transfer of shares, limits members to 200 and prohibits public invitation to subscribe to securities.
Practical example
Most startups incorporate as private limited companies.
Related terms
Official reference
Companies Act, 2013, Section 2(68)
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