The circular formation problem for multi-agent systems with limited interaction range and input saturation is addressed in this paper. Low gain feedback is used to develop distributed formation control laws for each agent. It is shown that the desired circular formation can be formed if the agents' interaction range is sufficiently large and each low control gain is upper bounded by a given constant. Order preservation of the agents is also guaranteed under the formation control laws such that collision among the agents can be prevented throughout the circular formation task. Finally, a simulation example is provided to illustrate the effectiveness of the proposed control laws.