Advantages of Private Limited Company

• A separate and distinct legal structure
  Such entities provide distinction between ownership and function. It creates a separate legal structure both in terms of taxation and liability. Moreover it also allows for outside funding and employee stock options. The shareholders of the company can be changed without affecting the operation of the company.
• Borrowing Capacity
  The company can issue debentures and convertible debentures. It can also accept deposits from the public and enjoys different and good avenues for borrowing. Banking and financial institutions prefer this type of entity for larger lending over other entities 
• Limited Liability
  The liability of the owners is limited to the extent of their share capital in the company.
• Transferability of shares is fairly easy and simple

  The process of buying and selling of shares is fairly simplified in comparison to that of other entities. It creates easy option for owner to exit from the company in future