A Private Limited Company , regulated by the Companies Act, 2013 has separate legal entity in the eyes of law. A separate legal entity means that the corporate body or business has a separate existence apart from its directors or shareholders.
- It has a separate legal entity.
- It has perpetual succession i.e. the company does not cease to exist on death of any or all of the members.
- The members or shareholders do not have a personal liability to discharge debts.
- The directors are responsible for the everyday business of the company.
- Easy transferability of ownership.
- Shares of such company cannot be floated to general public.
- A minimum number of two directors is required for registering the private limited company . One of the directors must be a resident of India.
- Mandatory to have a registered office address for all official communications.