Minimum Share Capital
A Private Limited Company can be established with no minimum capital. But normally Authorise Capital is Rs. 1 Lakh.
Easy transferring of shares
A shareholder can transfer their shares in a business limited by its shares to anyone else. The transfer is simple compared to transferring a stake in a firm managed as a sole proprietorship or partnership. It is simple to transfer shares by filling out and signing a share transfer form and giving over the buyer of the shares along with the share certificate.
Limited Liability of Directors
In case of a private limited company, the liability of every shareholder is limited. In case of any losses occur the personal assets of the shareholders are not at risk.
Easy Fund Raising
Private Limited company is a favorite legal structure for bank and NBFC as compare to any other legal structure like proprietorship concern or partnership firm. Therefore, Private Limited company can raise fund easily from bank and NBFC.
Separate Legal Entity
A company is defined as a separate legal entity and a juristic person. A juristic person is someone who isn't a human being or a natural person. As a result, a business has a legal capability, including owning property and incurring debt. A Pvt ltd corporation is a separate legal entity from its shareholders.
Flexible Relations
When a private limited company is considered, a person can act as a shareholder, director, and employee all at the same time. They are also regarded as trustworthy.
Access to funding
Because there is a distinction between shareholders and directors, private limited firms can easily handle equity capital. Any other structure is unlikely to attract venture capitalists and private equity firms.
