What is meant by a private company?

According to Section 3(1) (iii) as amended by the companies (amended) Act, 2000, a private company means:-

A company which has a minimum paid up capital of one lakh rupees, or such higher paid up capital as may be prescribed by its articles provides for the following restrictions.

1. Restricts the rights of members to transfer the shares
2. Limits the number of its members to fifty and
3. Prohibits any invitation to the public to subscribe for any shares or debentures of the company.
4. Prohibits any invitation or acceptance of deposit from persons other than its members, director’s or their relatives.

However, u/s. 25, companies not for profit have been exempted from the provision of minimum paid up capital of Rs. 1 lakh.