There are several reasons why more individuals choose to register private ltd companies.The advantages of a private limited company include: A Private Limited Company is a legal entity. the company's finances are separate from its owner's finances. Protection from personal liability to Limited company owners.
One advantage of owning a private limited company is that the financial liability of shareholders is limited to their shares. Therefore, if a private limited company will be in financial trouble and need to close the Company then shareholders will not risk losing their personal assets.
Disadvantages of owning a private limited company are: Shares cannot be sold on a public stock exchange. Limited growth and restricted number of shareholders.