A private limited company (PLC) is a privately held corporation for small businesses, startups and growing companies. A member’s liability in a Private Limited Company is limited to the number of shares that he or she owns. Shares in PLC, however can be offered to existing shareholders, or to professional investors and companies. It is the most common type of business registration since it establishes a company’s reputation and credibility in the marketplace. PLC must have a minimum of 2 shareholders and canhave maximum of 200. Shareholders are regarded the company’s owners, while directors are considered the company’s key managerial personnel (KMPs).

Incorporating a Private Limited Company is the best option since it can be formed easily provides business expansion, legitimacy, tax benefits, and faster loan approval. It encourages the easy development of capital and the pooling of funds among members.