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Private Limited Companies are those companies which are privately held by the people. Private company can be form by two persons. It has the various benefits limited liability, greater stability and legal entity. It is preferred by Venture Capitalists over any other form of registration.
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1 The company has a separate legal entity.
2 It can be started with minimum paid-up capital of Rs. 20.
3 You can open private company with two directors.
4 Private limited companies enjoy tax advantages.
5 A company being a separate legal person, is unaffected by the death or other departure of any member and continues to be in existence irrespective of the changes in ownership.
6 A private limited company is required to perform lesser legal formalities as compared to a public company.
7 A private limited company is not required to publish its accounts or file several documents.