This is a part of lecture presented by Mr. P.C Jangir, Vice Principal of Biyani Girls College. The word company is composed of Latin words two words — com +pain. Com means bread, pain means sharing. This means sharing bread together.
In the earlier time business men used to sit together and eat feast together and talk about business. Slowly and gradually company became a voluntary association of two or more persons working under a common object. After some time incorporation or registration became mandatory. Hence a Company is a voluntary association of two or more persons working for common purpose. It is invisible intangible artificial, created by law, having separate legal existence.
Its capital is divided into shares, which are transferable having common seal.

This is a part of lecture presented by Mr. P.C Jangir, Vice Principal of Biyani Girls College. Private company is a company defined under companies act 1956 (3(iii)) as follows
1. It has minimum two members and maximum 50
2. It restricts to transfer of shares to public.
3. It prohibits to public deposits and issue of prospects.
A private company must require at least one lakhs capital shares .at the end the name of The Company the word private limited is to be appended.