What is a Private Limited Company? 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.
The shareholders are the real owners of the company. The ownership in a Private Limited Company is defined by share capital. Shares are the equal parts of the company’s capital.
Therefore a company form of organization has wide legal capacity and can own property and also incur debts. The members (Shareholders/Directors) of a company have no liability to the creditors of a company for such debts. Hence, a pvt ltd company is a legal entity separate from that of its members.
To start your Private limited company at least two people is required and you may exceed to a maximum of 200 people. If your company faces any loss , you are liable to sell assets of company for payment. Your personal or any individual resources or funds are not at risk. A private limited company exists forever.