LIMITED LIABILITY- The greatest benefit of Private Limited Company is limited liability. Members are only liable for unpaid shares held by them and not more than that, there is no personal liability of shareholders to the creditors of a company for company’s debts.

Limit – private limited company must have at least two directors and shareholders, and can have a maximum of 15 directors and 50 shareholders.

Perpetual Succession- Private Limited Company goes on and on until it is legally dissolved. As private limited company is having separate legal identity, so it is unaffected by the death or other exit of any member and continues to be in existence irrespective of any changes in ownership.

Investment-ready- Private limited companies easily accommodate equity funding as there is a clear distinction between shareholders and directors as well as limited liability. This feature also gives you the ability to hire top talent by offering them ESOP in company. Companies can also issue equity shares, preference shares, debentures and accept deposits with RBI permission, however shares can’t be openly sold in market as of public limited company.

Compliances- It is necessary for a company to audit its books of accounts irrespective of its turnover and also need to file annual statement within stipulated time given by government, if not done penalties and prosecution is attracted.

Property Ownership – Private Limited Company being an artificial person, can acquire, own, enjoy and alienate, property in its name, property may be tangible or intangible such as machinery, land & building, factory, trademark, patent etc., shareholders can’t exercise their rights on property of company.