Privately-held companies are privately held. This means that, in most cases, the company is owned by the company's founders, management or a group of private investors.
Features of Private Company
Minimum and Maximum Share Holders
A minimum of two shareholders and a maximum of up to 200 shareholders are allowed in a private limited company. The shareholders could be natural persons or companies, including foreign companies. A Foreign National or an NRI Foreign Companies can hold shares of a Private Limited Company subject to Foreign Direct Investment (FDI) Guidelines.
A Private limited company must have a minimum of two Directors at all times and can have up to a maximum of fifteen Directors for which the limit can be increased by following certain procedure. The Director needs to be over 18 years of age and must be a natural person. A Foreign National or an NRI can be a Director in a Private Limited Company in India after obtaining Director Identification Number. However, at least one Director on the Board of Directors must be an Indian Resident during the year.