(68) Private Company

“private company” means a company having a minimum paid-up share capital of one lakh rupees or such higher paid-up share capital as may be prescribed, and which by its articles,—

(i)

restricts the right to transfer its shares;

(ii)

except in case of One Person Company, limits the number of its members to two hundred:

Proviso

Provided that where two or more persons hold one or more shares in a company jointly, they shall, for the purposes of this clause, be treated as a single member:

Proviso

Provided further that—

(A)

persons who are in the employment of the company; and

(B)

persons who, having been formerly in the employment of the company, were members of the company while in that employment and have continued to be members after the employment ceased, shall not be included in the number of members; and

(iii)

prohibits any invitation to the public to subscribe for any securities of the company

Notes, amendments & references (4)

The requirement of having minimum paid-up share capital under Section 2(68) shall not apply to section 8 company vide notification no. G.S.R. 466(E) dated 5th June, 2015.

(The exceptions, modifications and adaptations provided above shall be applicable only to those companies covered under section 8 of the said act which has not committed a default in filing its financial statements under section 137 of the said act or annual return under section 92 of the said act with the registrar, vide notification dated 13th June, 2017)

To view the notification, Click Here

of one lakh rupees or such higher paid-up share capital omitted by the Companies (Amendment) Act, 2015 (21 of 2015), notified on 26th May, 2015, with effect from 29th May 2015 vide notification S.O.1440(E). To view the notification, Click Here