A Private Limited Company, also known as a privately held company, is a type of business entity that offers limited liability protection to its shareholders. It is a popular form of business structure chosen by small and medium-sized enterprises (SMEs) for its flexibility, legal protection, and potential for growth.

• Limited Liability: One of the primary advantages of a Private Limited Company is that it provides limited liability protection to its shareholders. The liability of shareholders is limited to the extent of their shareholdings, protecting their personal assets from the debts and liabilities of the company.

• Shareholders: A Private Limited Company must have at least two shareholders and can have a maximum of 200 shareholders. These shareholders can be individuals or other corporate entities. Shareholders own shares in the company, which represent their ownership interest and rights in the company.

• Directors: Private Limited Companies must have at least two directors, who can also be shareholders. The directors are responsible for the management and decision-making of the company. They are appointed by the shareholders to oversee the day-to-day operations and strategic direction of the company.