Is Private Limited Company The Same As Privately Held Company?

Yes, a private limited company and a privately held company refer to the same type of business entity. Both terms are used interchangeably to describe a company that is privately owned and not publicly traded on a stock exchange.

A private limited company, often denoted as "Pte. Ltd." or "Ltd.," is a legal structure that offers limited liability protection to its shareholders. It is a separate legal entity from its owners and can conduct business, enter into contracts, and own assets in its own name. The ownership of a private limited company is typically held by a small group of individuals, families, or other private entities.

The term "privately held company" is a broader term used to describe any company that is privately owned, regardless of its legal structure. It encompasses various types of entities, including private limited companies, partnerships, sole proprietorships, and other forms of privately owned businesses.

In summary, a private limited company is a specific legal structure of a privately held company, which is characterized by limited liability protection and shares held by a private group of owners.