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.


  • 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.