Nominal responsibility on owners
The responsibility of members is confined to a level of capital contribution accepted by the company members. The debt loss of a venture can’t be given to members, even on liquidity. Moreover, a member is not considered responsible for any kind of occurrence of neglect or wrong doing of any associated member.
Distinction of Management team from the proprietorship
The distinct proprietorship and management are useful for both regarding their potential works. The shareholders assign tasks to the directors for managing and operating the venture without missing the hilt through voting.
Distinct legal body
A partnership is not a distinct legal body. In case any of the partner partnerships or takes retirement or simply has to quit the venture, the partnership gets terminated, and hence a fresh partnership is established. However, this is not meant for Pvt Ltd companies. This Pvt. Ltd companies are the distinct legal entity, which is why it enables in suing third parties.
Generating capital is much simpler with Pvt. Ltd companies as it lets the members in taking part without being personally responsible, which is not like the general partnership that the entire associated partners have unreserved liability. The company comes with various modes of fundraising in the form of private equity, ESOP, etc.