In India private limited company is the most widespread and famous type of corporate legal entity. The registration of the private limited company is regulated by the Ministry of Corporate Affairs, Companies Act, 2013 and the Companies Incorporation Rules, 2014. At least two shareholders and two directors are needed in order to register a private limited company. A corporate legal entity can only be a shareholder, whereas a natural person can be both a director and shareholder. Moreover, foreign corporate entities, foreign nationals or NRIs is authorized to be directors and/or shareholders of a company with Foreign Direct Investment, making it the preferable option of entity for foreign developers. The private limited company includes some unique features like ability to raise equity funds, limited liability protection for shareholders, perpetual existence and separate legal entity status make it the most suggested types of business entity for millions of small and medium sized businesses that are family owned or professionally managed.