In India, aspiring entrepreneurs often gravitate towards Private Limited Companies (PLC) for their ideal business structure. This preference stems from several advantages such as giving exposure to one’s startup business, increasing the growth of the company and other organisational appeals. The main advantage is enhanced exposure. Private Limited Companies are recognized entities. They help in boosting credibility and attracting more customers compared to partnerships.

The secondary benefit is scalability for growth. Raising capital is easier for PLCs due to their ability to issue shares. They assist in facilitating expansion and potential future public offerings. Another benefit is structured finances. Unlike partnerships with unlimited personal liability, PLCs offer limited liability to shareholders to protect their personal assets. They also provide a benefit for institutional appeal. Financial institutions view PLCs as more stable and reliable, making them more likely to extend loans and investments.