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 from 2 to 50, and restricts shareholders from publicly trading shares. So, their shares do not trade on public exchanges and are not issued through an initial public offering. Shareholders may not be able to sell their shares without the agreement of the other shareholders. CompanyMantra.com can incorporate a Private Limited Company in 14 to 20 days, subject to ROC processing time.
- Protection of personal assets - safeguarding of personal assets against the claims of creditors and lawsuits. Jointly responsible for all the liabilities .They are limited in liability to the amount they have invested in the corporation.
- Transferable ownership - Ownership in a corporation is easily transferable to others, either in whole or in part. Some state laws are particularly corporate-friendly.
- Raising funds through sale of stock - A corporation can easily raise capital from investors through the sale of stock.
- Durability - A corporation is capable of continuing indefinitely. Its existence is not affected by the death of shareholders, directors, or officers of the corporation.
- Credit rating - Regardless of an owner's personal credit scores, a corporation can acquire its own credit rating.
- Limited Liability
- More capital can be raised as no limit on number of shareholders
- Control of company cannot be lost to outsiders – shares only sold if all shareholders agree
- The business will continue even if one of the owners dies, Shares being transferred to another owner
- Cost of the setting up is not high.
- People may come and people may go, but the company goes on forever.