Private limited company is a joint stock company whose shares are held by private individuals. It since one which through it’s articles of association limits the transferability of shares i.e. the members cannot transfer it’s shares limits the number of members to 200 other than one person company meaning that except for one person company , the maximum number of members in a Pvt. Ltd. Company can be two hundred only. The entity cannot invite public to subscribe for it’s shares or debentures.
- It is adaptable and has restricted risk.
- More prominent capit commitment and more security.
- Probablity to grow and become huge.
- The owner’s liability is limited to their share holding. Their personal assets are safe. Bank will recover from company assets only.