A Private Limited Company (Private Ltd. Co. or Pvt. Ltd. Co.) is a business structure that combines the operational flexibility of a partnership with the limited liability protection typically found in corporations.
Limited Liability: One of the main benefits of a Private Limited Company is the limited liability feature. Shareholders are only liable up to the value of their shares in the company, which means their personal assets are usually safeguarded against the company’s debts and liabilities.
Distinct Legal Entity: A Private Limited Company is recognized as a separate legal entity, independent of its shareholders and directors. This allows it to own assets, enter into contracts, and engage in legal proceedings, such as suing or being sued, under its own name.
Shareholder Requirements: A Private Limited Company must have at least two shareholders, with a maximum limit of 200 shareholders. These shareholders can be individuals, other companies, or various business entities.
Director Requirements: A Private Limited Company must have a minimum of two directors, one of whom must be a resident of the country where the company is incorporated. There is no upper limit on the number of directors the company can have.
