What are Private Limited Companies?

This is an incorporated business which has two to fifty members, with a common goal of making a profit. It is restricted to only family and or friends.

A Private Limited Company las some legal requirements when forming. The following documents must be submitted to the Registrar of Companies:

• Memorandum of Association
• Articles of Association
• Statement of Authorized Registered of Nominal Capital

(Find more info about these three documents in our POB Notebook!)

Characteristics of Private Limited Companies

• Capital is obtained from private individuals, financial institutions (eg. banks) and government agencies.
• Limited must be included in the name of the business.
• Shareholders have limited liability.
• Accounting statements are to be audited with a copy being sent to the Registrar of Companies.

What is the Registrar of Companies?

Simply put, this is a record of all the registered business (it is a government office/department).

The Pros and Cons