A private company is a type of business organization with a range of membership from two to fifty and each member is liable to the tune of the nominal value of the shares he holds in the company. As a result of this, the private company is a limited liability company and this is the major advantage over partnership business enterprise.
Features Of Private Limited Liability Company     
1.                  The formation is quite easy, i.e. but needs just two or more people not exceeding fifty in number.

2.                  It enjoys limited liability rights and has a decisive advantages over partnership business organization
3.                  It is compulsory on a private company to submit audited accounts for the interest of the public
4.                  Shares of a private company are not transferable except with the general consent of other share holders
Advantage Of Private Limited Liability Company            
1.                  Since a private company is a limited liability company it enjoys the full rights of limited liability company (i.e. in case of debt settlement by the company, the private personal assets of members are not tampered with).
2.                  Private company can with full privileges afford a couple being or making up the board of director of the business.
3.                  Legal restrictions are limited because it does not require the company issuing company prospectus.
4.                  There is continuity of the company even with the death of a shareholder.
Disadvantages of Private Limited Liability Company            
1.      A private company cannot offer its shares for sale to the public by a rule and therefore cannot appeal to the public to increase its share capital.
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