Separate Legal entity- An entity means something which has a real existence; a thing with distinct existence. .
Limited liability- a private limited company’s shareholders do not face the risk of losing their personal assets. Only the amount invested starting the business would be lost and that the Director’s personal properties would be safe.
Free & Easy transferability of shares– Shares of a company limited by shares are transferable by a shareholder to any other person
Easy to fetch funding- Private limited companies easily accommodate equity funding as there is a clear distinction between shareholders and directors as well as limited liability.
Easy exit– Private limited companies can be sold or transferred, either partially or in full, to another individual or entity without any disruption to the current business.