private company means a company which have 3 restrictions on it
1) restricts the transfer of shares [I.e., members can't transfer their shares freely unlike public company....]
2)except in case of opc, no.of members are limited to 200
[ while counting no.of members:- a)joint share holders are counted as single member following members are excluded 1) employee members 2) ex- employee members ( employees who have shares in the company)
3)it is prohibited from inviting public for subscripttion of securities unlike public company
CAclubindia
