want to know_more_about_private_companies_limited_
TRANSCRIPT
Want to know more about Private Companies Limited by Shares?
Incorporating a Private Company is incredibly easy but it has some laws and procedures to follow. Any individual or a corporate body can own a company. Here we have some essential information to know about the “companies limited by shares“.
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Private Company Private Company
A Private Company is the one which offers a limited liability and a protection to its shareholders and it has a minimum paid-up capital of Rs. One Lakh or such a higher capital may be prescribed. Transferring of shares will be restricted. Maximum of fifty members can be in that company following with some limitations that the former employees will not be included whose employment was ceased and also the persons who are in the employment of that company.
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It strictly prohibits any invitation to the public for any shares in or debentures of the concern and any invitations or acceptance of deposits from the person other than the company members, directors or their relatives.
Private Company Private Company
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In this type of company can be incorporated with a minimum of 2 persons and have a maximum of 50 persons. The members should not exceed 50 excluding the members who are past or present employees of the company. The joint holders will be considered as a single member for this purpose.
Private Company Private Company
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In the absence of any provisions which are mentioned above would not retain its character and that will be considered as a public company. It enjoys certain privileges and exemptions from some of the provisions of the act. The biggest advantage is that after incorporation, the company can commence business.
Private Company Private Company
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Privileges enjoyed by private companies
A company may allot shares without issuing a prospectus or delivering to the registrar a statement instead of the prospectus.
Purchases of any shares in the company or in its holding company are not applicable to a purely private company.
These companies are exempted from holding statutory meetings as required.
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In a private company a firm or a body, corporate can be appointed to an office or a place of profit.
Copies of balance sheets and profit& loss accounts of a company may be filed separately with a registrar and no person other than a member is entitled to inspect the profit & loss account.
It need not have more than two directors.
The Retirement of directors by rotation are not applicable.
Privileges enjoyed by private companies
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Privileges enjoyed by private companies
Central Government’s approval is not required to increase the number of directors beyond 12 in a company.
A company need not constitute a committee of the Board known as Audit committee.
Approval of the Central Government is not necessary for granting loans to the directors in the case of company.
The managing director may be appointed for a period of more than 5 years at a time.
http://www.onlinecompanyregistration.in/index.php
http://www.onlinecompanyregistration.in/index.php