A company that is limited number of shares and does not listed in stock exchange is called private limited company. Most of the companies are private limited company in every country. Number of public companies is limited indeed. The investors like to start business not to share revenue with public and many partners. Number of small and medium enterprises is plenty of and every place in the world. Normally features of private limited company are as follows:
- There shall be Memorandum and Article of Association and objectives or business activities are written in Memorandum. Company rules and regulations are written in Article of Association.
- Example of Article of Association: There shall be written number of directors, share value, director’s position, rules of appointing auditor, rules of Company Secretary, Act of the directors, rules of disqualification of directors and others.
- Minimum number of share holders and directors of private limited company is one or two and maximum around fifty (in most of the country).
- Normally private limited company cannot declare dividend and offer public share to market.
- Company return has to submit annually to government business licensing office, income tax or revenue office and/ or investment regulatory authority.
- Private Limited Company is not responsible to stock exchange controller.
- Example of private limited company: Small and medium enterprise and sometimes big industry might be private limited company. Service business, retail business, professional business, manufacture business, garments business, property development business etc.