PRIVATE LIMITED

COMPANIES
MADE BY – ANSH JAIN, AARAV KATULA, ABHAY SINGH
 DEFINITION FEATURES ADVANATGES

INDEX

DIADVANATGES SUITABILITY
 • A private limited company is a type of company
that offers limited legal protection for its
shareholders but also places certain restrictions
DEFINITION on its ownership. These restrictions are defined
in the company's bylaws or regulations and are
meant to prevent any hostile takeover attempt.
EXAMPLES OF
PRIVATE
LIMITED
COMPANIES
 • To start a company a minimum of about 2 members are required and
maximum of about 50

• Limited Liability– The liability of each member or shareholders is

limited. It means that if a company faces loss under any

FEATURES OF circumstances then its shareholders are liable to sell their own assets
for payment. The personal, individual assets of the shareholders are
PRIVATE LIMITED not at risk.

COMPANIES
• shareholders cannot offer their shares to the general public over a
stock exchange
 THE ADVANATGES

RESTRICTED LIABILITY TAX CUTS(DECREASED SECURITY OF HAPPENING THE COMPANY CAN HIGHER BUSINESS STATUS
TAXES) TO KNOW THAT THE CONTINUE TO RUN AND COMPARED TO A SOLE
COMPANY IS WORTH TRADE EVEN AFTER ONE TRADER
INVESTING OF ITS MEMBERS DIES
DISADVANATGES

Increased legal compliance -

For instance, private limited
Restricted access to capital
companies must submit annual
markets
financial accounts to the
government

Limited personal control Division of ownership

SUITABILITY

• Private limited companies are suitable for those people who are looking forward to a
safer business where only family and friends are involved, as the shares of private
companies can only be sold with the permission of the owners.
THANK YOU!