Private Limited Company is corporate entity which would act as separate from its owners.
Incorporation of a company has many advantages as a whole:
1) By doing this owner's personal assets are secured as against the company's liabilities and debts.
2) One can easily transfer the ownership of his business to another party.
3) Taxation can be lowered as compared to that on personal income.
4) Investment can be raised through capital route easily by sale of shares.
In simple words it creates a protective bubble around a company's owners, shareholders and directors. Incorporated businesses can focus on growth without the risk of exposing its shareholders, owners and directors to personal financial liability more than their investments in the company.