A private limited company, or LTD, is a type of privately held small business entity. This type of business entity limits owner liability to their shares, limits the number of shareholders to 50, and restricts shareholders from publicly trading shares.

Advantages of a Private Limited Company

The major advantages of a private limited company are as under:-

1. One of the advantages of private limited company is that members are well known to each other; however control is in the hands of owners of capital.
2. In the management of affairs and conduct of business is greater flexibility.
3. Statutory meeting is not required as well as submitting of a statutory report.
4. The number of directors in a private limited company is at least two.
5. One of the advantages of private limited company is that its limited liability, due to which every member enjoys this facility. It has the advantage of a public company and a partnership firm.
6. A private ltd company after receiving certificate of incorporation can start their business immediately.