Private company refers to a company:
(1)That has minimum of two and maximum of fifty members, excluding employees.
(2)That restricts the right of members to transfer their shares.
(3)That does not allow public to subscribe to its share capital, and that has a minimum paid up to 1 lakh.
(4)That is required to use the word private limited after its name. A private company enjoys many privileges over a public company.