A private company incorporated under the Companies Act, 2013 may issue debentures to any number of persons and can accept deposits from the public.

According to the definition of private company under Section 2(68), a private limited company may not make an invitation to the public to subscribe for any securities of the company. However, under Section 42 read with Section 2(68), it may issue such security to any person (number of persons not exceeding 200). In terms of provisions of Section 73(2) read with Exemption Notification dated 5th June, 2015, a private company may accept from its members monies not exceeding one hundred per cent of aggregate of the paid-up share capital and free reserves, subject to the passing of a resolution in general meeting and subject to such rules as may be prescribed in consultation with the Reserve Bank of India, accept deposits from its members on such terms and conditions, as may be agreed upon between the company and its members, subject to the fulfilment of certain conditions, as provided under the Act.