It is a separate legal entity having perpetual succession, with limited liability only up to the share of capital. A private limited company restricts the number of members to 200. The company can be formed with just two members only. The directors of a private limited company have limited liability to creditors. It is very important to register your company as a registered company has multiple advantages ranging from easy registration to ease in winding up. Nowadays more and more start-ups companies prefer private limited company since it facilitates easy funding. Moreover it limits the liabilities of its shareholders and enables them to offer various staff emoluments such as employee stock options, etc. in order to retain and pull in top talent.