The Maximum Number of Members in a Private Limited Company is
By BYJU'S Exam Prep
Updated on: September 11th, 2023
The maximum number of members in a private limited company is 200, in India. The Companies Act, 2013, which is the Regulation Act of Private Limited Companies, declared that the maximum number of members in a private company should be two hundred. A company with only one member is known as a One Person Company.
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Maximum Members in a Private Limited Company
The Ministry of Corporate Affairs regulates all private limited companies in India and frequently issues notices, circulars, and notifications to companies. Out of the total, about 93% of all the companies are registered as Private Limited.
As per the Companies Act, 2013, 200 maximum members are allowed in a Private Limited Company. If a company has only one registered member, it will be known as a one-person company. In India, all private limited companies are governed by the Ministry of Corporate Affairs and regulated under the Companies Act 2013.
- A Private Limited Corporation can smoothly be transferred or sold to another company or individual.
- This can be done either completely or partially as per the need.
- Private Limited Companies are considered to be suitable for equity financing.
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