Introduction
This is a non-Governmental organization which is secretly held for small business. The liability of the individuals from a Private Limited Company is limited to how much share separately held by them. Shares of Private Limited Company can’t be publically exchanged.
Advantages of Private Limited Company
- Limited risk to personal assets in Private Limited Company.
- It is easy to fetch funding in a private limited company by transferring of shares.
- For a private company, the earlier minimum number of the share capital was Rs. 1,00,000, but now there is no such minimum capital compulsion
- The share of the pvt. Ltd company is transferable by a shareholder to any other person .
- Foreign investor can invest their fund directy to the private limited company.
- Registering your business as private limited company will help you to attracting the investor helps to competing the market of your industry.
- Private limited company are not pressurized by the stock market and you don’t have to worry about shareholder.
- The limited company can focus long-term earning without any hesitance.
Disadvantages
- The maximum shareholder is 50, and the maximum member is 200.
- The share of the private limited can’t be quoted in the stock exchange.
- They can’t issue prospectus to public.
