GlossaryPrivate Limited Company
Pvt LtdCompany Structure

Private Limited Company

(Pvt Ltd)

Definition

A separate legal entity with limited liability for shareholders, where shares cannot be publicly traded. The most common structure for funded startups in India. Governed by the Companies Act 2013.

Why founders care

Required for VC/angel funding, ESOPs, and building institutional credibility. Higher compliance cost (₹40,000–₹80,000/year) than other structures, but essential if you plan to raise investment.

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