Question

Why would a business choose to be a private limited company?

Answer 1

Stability due to Limited Liability: Private Limited Company has this feature of limited financial liability of all the shareholders. The liabilities are limited to their shares only. This feature protects the personal assets and income of shareholders at times of any financial crisis faced by the company.

Answer 2

cos of the limited liability of it's share holders.

easier to maintain

it's flexible Management structure

easier to raise capital

it's protection from creditors