Advantages of Private Limited Company

The limited liability

 If a company has financial difficulties for any reason, the personal assets of the shareholders will not be used
to pay the company’s debts. In contrast, sole proprietorships have unlimited liability.
Free and easy share transfer

 Shares of a private limited company in shares can be transferred by one shareholder to any other person. To
make this process effective shareholders should submit and sign the share transfer form and hand it over to
the share purchaser along with the share certificate.
Continuity of existence

 Unlike a sole proprietorship, The advantage of a private company is a separate legal entity. It can exist
indefinitely even with the death or inability of the owners “Permanent inheritance” is one of the most
important characteristics of the company.
Disadvantages of Private
Limited
Company
Registration Process

Private limited company registration on average takes

about 10 – 15 days. Proprietorships or partnership firms often encounter
difficulty
post-registration while having to open a bank account or obtain a payment
gateway,
as they are considered to be unregistered business entities
Division of Ownership

PLC requires a minimum of two persons to act as Directors and shareholders.

Any major decision to be taken by a company would always require the consent of
two
persons. That might cause some trouble and conflicts between them
Personal Liability

The company itself is fully liable for its debt and has unlimited liability.
When in any act or contract, the name of the company has been misdescribed,
those who have actually done the act or made the contract will be personally
liable
for it.