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A Private Limited Company is a separate legal entity with limited liability, owned by up to 200 members, restricting share transfer and excluding public fundrai
A Private Limited Company (Pvt. Ltd.) is a type of business structure commonly chosen by small and medium-sized businesses. It is registered under the Companies Act and is treated as a separate legal entity, meaning the company’s existence is different from its owners.
Ownership & Shares: Ownership is divided into shares, but those shares cannot be offered to the public or traded on the stock exchange.
Members: It requires a minimum of 2 members and can have up to 200 members (excluding employees).
Liability: The liability of shareholders is limited to the amount unpaid on their shares, so personal assets are generally safe.
Control: Decisions are managed by directors and shareholders, ensuring more control in fewer hands compared to a public company.
Advantages: Limited liability, credibility with investors, easier to raise funds privately, and better legal recognition than sole proprietorships or partnerships.
Limitations: Cannot raise funds from the general public, has higher compliance requirements than proprietorships or partnerships.
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