What is Private Limited Company? Section 2(68) of Companies Act, 2013 defines private companies as the companies whose articles of association restrict the transferability of shares and prevent the public at large from subscribing to them. This is the essential criterion that differentiates private companies from public companies.. A private limited company is a privately held business entity held by private stakeholders. The liability arrangement, in this case, is that of a limited partnership, wherein the liability of a shareholder extends only up to the number of shares held by them. With the startup ecosystem booming across the country and more and more people looking.

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Now that we have examined the characteristics of a private limited company let us explore the advantages it offers: 1. Limited Liability Protection. The limited liability feature shields shareholders' personal assets, offering them peace of mind and encouraging investments in the company. 2.. A private limited company is a type of organisation you can set up to run your business. Company ownership is split into shares owned by shareholders. A company must pay corporation tax out of any profits and can then distribute the remaining profits among shareholders. It's run by directors who are legally required to perform certain duties.