Private Limited Company

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A Private Limited Company is a type of company that offers Limited Liability or legal Protection for its shareholder Private Limited Company which can have a minimum of two members and can go as far as to two hundred members, it must have minimum of two directors and a maximum of fifteen directors.

Private Limited Company lies somewhere in between a partnership firm and a widely owned public company, as it have all the advantages namely flexibility, borrowing capacity, greater capital combination of different and diversified abilities, etc.

 

private limited company registration

There are numerous benefits:

  • A private limited company is considered to be a separate legal entity. It has its own identity and very much recognized as a separate company under the law.
  • Private Limited Company has this feature of limited financial liability of all the shareholders. The liabilities are limited to their shares only. This feature protects the personal assets and income of shareholders at times of any financial crisis faced by the company. Also, it gives the company more liberty of taking risks.
  • Private Limited companies are not affected by the status of their own when it comes to their existence. Death or inability to continue if the owner does not hinder the proceedings of the company.

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