To incorporate a private limited company, a minimum of two shareholders are required. A minimum of two shareholders and a maximum of up to 200 shareholders are allowed in a private limited company. The shareholders could be natural persons or companies, including foreign companies.
A company limited by shares must have at least one shareholder, who can be a director. If you’re the only shareholder, you’ll own 100% of the company. There’s no maximum number of shareholders.
It can become a shareholder of a company by agreeing to the Memorandum of Association of the company or by subsequent purchase of shares in the company. For assistance with incorporation of a private limited company, contact IndiaFilings.
What are the disadvantages of a private limited company?
In law, a private limited company is separate from the people who own it. Its finances are separate from their personal finances.
|More able to raise money||High set-up costs (legal and administrative)|
|Limited liability||Harder to motivate and control workers|
How many directors can you have in a limited company?
However, public limited companies (PLCs) must have at least two appointed directors at all times. There is no maximum number of natural or corporate directors that companies may have, unless the articles of association imposes any such restrictions.
What are the advantages and disadvantages of private limited company?
Advantages and disadvantages of Private Limited Company
- No Minimum Capital.
- Separate Legal Entity.
- Limited Liability.
- Fund Raising.
- Free & Easy transfer of shares.
- Uninterrupted existence.
- FDI Allowed.
- Builds Credibility.
Income stocks usually pay shareholders quarterly, but these companies pay each month.
To clarify, private companies can only have fifty (50), non-employee shareholders. Importantly, this means that your company can have more than fifty (50) shareholders, if they are employees. Additionally, the law does not limit private companies to fifty (50) shares.
You can find out the names of the shareholders of a public company through several resources. If you wish to find out the names of large shareholders of a public company that has filed with the SEC, you can find this information by searching EDGAR, the SEC’s Electronic Data Gathering, Analysis, and Retrieval System.