Private Limited Company: A Private Limited Company (Pvt Ltd) is one of the most popular business
structures in India and across the world due to its combination of flexibility, limited liability
protection, and ability to raise capital. In a Pvt Ltd company, the ownership is divided among
shareholders, and the liability of each shareholder is limited to the amount invested in the company.
The company must have at least two members and a maximum of 200 shareholders. One of the key advantages
of a Pvt Ltd company is that it offers limited liability protection, which ensures that the personal
assets of the shareholders are not at risk if the company faces financial difficulties. Additionally,
the company can issue shares, which can attract potential investors and help raise capital. This
structure also adds credibility to a business, which is particularly beneficial when dealing with
clients, suppliers, or financial institutions. A Pvt Ltd company is a distinct entity and is required to
adhere to statutory compliance requirements like annual filings and tax returns, which ensure a
transparent and accountable structure for the business.