A limited company is a completely separate entity from its owners. Everything from the company bank account, to ownership of assets and involvement in tenders and contracts is purely company business and separate from the interests of the company’s shareholders.
As the name suggests, if you run a limited company, you are protected in case things go wrong. Assuming no fraud has taken place, you will not be personally liable for any financial losses made by your limited company.
Those running a business as self employed do not enjoy such protection from financial claims if things go wrong with their business.
A limited company can issue various classes of shares. This means you can easily sell stakes in the company, or transfer ownership of shares.
Private limited companies easily accommodate equity funding as there is a clear distinction between shareholders and directors as well as limited liability.