1. Transferable Business or Ownership :-
A private limited company can easily be transferred to any other legal entity or person in India, in part or in whole, as the ownership of a private limited company is defined by shares and one can easily sell or purchase shares of a private limited company.
2. Limited Liabilities of shareholders :-
A private limited company provides its share holder with limited liability protection which means if any unforeseen event happened then the company will take care of it, there will be no effect on the shareholders of the company.
3. Easy Funding from external sources :-
Raising fund for a private limited company is very easy, the funds can be raised through equity capital from people and entities who are interested in becoming shareholders of the company.
Entrepreneurs can raise money from angel investors, venture capital firms, private equity firms and hedge funds.
4. A separate identity from owners :-
A private limited company has its own separate legal entity. A seperate Bank Account and PAN Card and can be declared to have a perpetual existence.