Private Limited Companies
What makes a company different?
A private limited company is separate from its owners. This means:
It keeps existing even if an owner dies.
It can make contracts in its own name.
Its business money is kept separate from the owners’ personal money.
Who owns it?
People who put money into the business buy shares.
These people are called shareholders.
Who runs it?
Shareholders choose directors to manage the business.
In a private limited company, the directors are usually the main or biggest shareholders.
Key point
Private limited companies = owned by shareholders, run by directors, and legally separate from the people who own them.
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