A private company means a company which:
(a) restricts the right of members to transfer its shares;
(b) has a minimum of 2 and a maximum of 50 members, excluding the present and past employees;
(c) does not invite public to subscribe to its share capital; and
(d) must have a minimum paid up capital which may be prescribed from time-to-time.
It is necessary for a private company to use the word private limited after its name. If a private company contravenes any of the aforesaid provisions, it ceases to be a private company and loses all the exemptions and privileges to which it is entitled.