Private Limited Company is one of the most popular and suitable form of business for entrepreneurs to start their business. Its limits the liability of the shareholders and provides legal status to the entity. This form of business is prerequisite if business owner wants to raise capital from external sources through allotment of shares. For starting a private limited company minimum 2 directors and shareholders are necessary. Both director and shareholder can be the same person.
Private Limited Companies are viewed as more credible form of business than proprietorship or partnership form of business due to requirement of statutory audit by Chartered Accountants. Now a day’s every new startup organisation start their business in the form of private limited company.