A private limited company can be simply explained as a privately-held business entity where the shareholders are the owners and directors are the managers. Start-ups and businesses with higher growth aspiration popularly choose Private Company as suitable business structure. A private limited company is incorporated under the Companies Act of 2013, and governed by the Ministry of Corporate Affairs (MCA). It is a registered entity with separate legal identity from its owners. Searching for an authentic help? Your right choice is AlgoBiz We will help you to register your dream private limited firm. Two shareholders and two directors are the bare minimum for registration. While an individual can serve as both a director and a shareholder, a corporate entity can only function as a shareholder. Foreign citizens, foreign corporate entities, and non-resident Indians (NRIs) can be Directors and/or Shareholders of a company that has received foreign direct investment, making it perfect for foreign promoters. The usual time it takes to form a business is roughly 10 working days, depending on the MCA Centralized Registration center's processing time.