Definition: Private limited companies are privately owned business structures with shareholders whose liability is limited to their investment.

A private limited company is a type of business entity where shares are not available on the public stock exchange. This means that ownership is restricted to a small group of shareholders, typically family members or close associates. Shareholders benefit from limited liability, meaning their personal assets are protected if the company incurs debts or losses. Additionally, the company can raise finance by selling shares privately, allowing it to attract investment without the regulatory complexities of a public offering.