Limited liability

The most top advantage of private limited company is limited liability, limited liability protects its shareholder for unlimited claim, shareholders are liable only for the amount of unpaid share capital.

Branding

Private limited company projects itself as a brand due to its unique name and suffix "Private Limited". When compared to partnership firm and other forms of business, private limited company enjoys edge over others in branding with easy ability for marketing etc. In general private limited company is viewed as a proper form as business by general public.

Credit worthiness

Private limited company enjoys superior credit worthiness, banks and other financial institution considers private limited as properly organised and monitored form of business therefore banks prioritize loans to private limted company.

Easy to expand

Venture capitalists and investors always considers private limited company for investment, it is flexible to add share holder or director in private limited company, based on the terms of contract between investors either he/ she can be added as shareholder or director.

Seperate legal entity

Private limited company is seperate from its members, it can enter in to transactions, buy or sell property in its own name.

Perpetual existance

Private limited company exists irrelevant of its members goes out or comes in, private limited company cannot be winded up automatically just for the reason members fall below 2 persons, where the no of members are below statutory limit it needs to be filled up within statutory time limit.