The Most common way to do business in India is to form a Private Limited Company. The First Preference of Entrepreneurs to start the business is Private Limited Company because of its nature of separate legal entity Limited liability better credibility, and ease in raising external funds. The registration of Private Limited Company is governed by the Ministry of Corporate Affairs. Any two legal people can open a private limited company while it must be limited to 200 members. A natural person can be both a director and member, while a corporate entity can only be a member. Further, foreign nationals, foreign corporate entities or NRIs are allowed to be Directors or Shareholders of the Company.