Company Act 2013

In legal terms, Section 2 (68) of the Companies Act, 2013 defines a private company as:
“A Company having a minimum paid-up share capital as may be prescribed, and which by its articles,— (i) restricts the right to transfer its shares; (ii) except in case of One Person Company, limits the number of its members to two hundred; (iii) prohibits any invitation to the public to subscribe for any securities of the company.” In layman Terms A Private Limited Company is Form of Entity which is owned by non-governmental organizations or a relatively small number of shareholders or members of a company with their Liability being Limited to the Amount of Shares held by them and the company being restricted to publically deal in its share.