Salient features of a Private Limited Company

• The transfer of shares could be restricted by the Articles of Association, thereby avoiding any undesirable persons to become shareholders of the company.
  
  
• Business can be commenced immediately on incorporation without obtaining a certificate of commencement of business.
  
  
• It is not necessary to hold a Statutory Meeting  and to send Statutory Report to the shareholders and file the same with the Registrar of Companies.
  
  
• A Private Limited company need not have more than two directors and two shareholders.
  
  
• A proportion of directors need not retire every year.
  
  
• Statutory notice is not required for a person to stand for election as a director.
  
  
• In passing a resolution for election of directors, all directors can be appointed by a single resolution.
  
  
• Directors of a private limited need not possess any share qualification.
  
  
• Articles of a private limited may provide for regulations relating to general meetings without being subject to the provisions of Sections 171 to 186 of the Companies Act, 1956.
  
  
• Governments sanction is not required for appointment of managing  or whole-time director or manager.
  
  
• Certain restrictions on the powers of the board of directors do not apply.
  
  
• Prohibition against loans to Directors does not apply.
  
  
• Prohibition against participation in board meetings by interested director does not apply.
  
  
• There is no restriction on remuneration payable to directors.
  
  
• Government cannot exercise its power to prevent change in board of directors which is likely to affect the company prejudicially.