Private Limited Company
Definition
A privately held company whose shareholders have limited liability and whose shares are not offered to the public. It is a separate legal entity, a common structure for growing businesses in India and elsewhere.
Related Terms in Business Terms
Working Capital Loan
Financing used to fund day-to-day operations — inventory, payroll, payables — rather than long-term assets. It bridges timing gaps between paying suppliers and collecting from customers.
Term Loan
A loan repaid over a fixed period in regular instalments, typically used to buy long-term assets or fund expansion. It carries a set interest rate and maturity.
Amortization Schedule
A table showing each payment on a loan split between interest and principal, with the outstanding balance after every instalment. It reveals how slowly principal falls early in a loan.
Equity Financing
Raising money by selling ownership stakes in a business rather than borrowing. It brings no repayment obligation but dilutes existing owners and shares future profits.
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