What is a characteristic of a Private Limited Company?

A Private Limited Company is characterized by being owned by a small number of shareholders, typically ranging from 1 to 149. This structure offers limited liability to its shareholders, meaning that their personal assets are protected from the company's debts. The ownership is usually more controlled and involves fewer individuals compared to larger organizations, which allows for more streamlined decision-making processes.

This characteristic distinguishes Private Limited Companies from other types of business structures, particularly public companies, which can issue shares to the general public and often have a significantly larger number of shareholders. The intimacy of ownership in Private Limited Companies encourages closer relationships between investors and the management, often leading to a more cohesive company culture.