A Private Limited Company is a business entity with a separate legal existence which is the major benefit compared to Partnership firm. Being a separate legal entity, the liabilities of shareholders of a Private Limited Company are limited to the extent of the share capital he/she subscribed, but in the case of a normal partnership firm, the personal assets are attached and they would be personally responsible for the liabilities if any happens. Statutory compliance for Private Limited Company are higher than that of the Partnership firm, even though it is better to convert to Private Limited Company if planning for business expansion and the partners want to increase the credibility of the entity with limiting liabilities to an extent.