PRIVATE LIMITED COMPANY
- ARE
- Feb 23, 2020
- 1 min read

A private limited company (Pvt Ltd company) is one of the most common forms of business organization. Any individual can carry on business for an entity intending to make a profit and enjoy the benefits of an incorporated entity, particularly limited liability. A private limited company stands between partnership and widely owned public company. In addition, there are several identifying marks of a private limited company. The list includes a name, a number of members, shares, formation, management, directors, and meetings, etc. The maximum number of directors shall have to be mentioned in the Articles of Association. In the grant of privileges and exemptions, the Companies Act has drawn a distinction between an independent private company and other private company which is a subsidiary of the other public company.
Advantages
Limited liability
Continuity of existence
Minimum number of shareholders
More capital
Easy to expand
Brand value
Disadvantages
Shares cannot be sold or transferred
Not allowed to invite public to subscribe to its shares
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