Most small and medium businesses will choose to register as a proprietary company. However, as proprietary companies are restricted to a maximum of 50 shareholders, sometimes a small unlisted public company may be a better fit.
A private limited company can have a minimum of 1 shareholder and a maximum of 50 shareholders.
The maximum number of members of private company is 200. So, in other words, maximum number of shareholder is two hundred. Share Transferability: As per the companies act, share of the private companies cannot be transferred. This is the major difference of private limited companies and public companies.
Is there a difference between Pty Ltd and Pty limited?
Pty Ltd is a term used for most private companies which stands for ‘proprietary limited’. By contrast, Ltd stands for ‘Limited’. Read more here. Company names often end with the term ‘Pty’ or ‘Pty Ltd’.
It is governed by the Companies Act 71 of 2008 and has the following characteristics: Shareholders – A minimum of one shareholder is required whose details are filed with the CIPC. Corporate shareholders are permitted. Membership is limited to a maximum of 50 shareholders.
What Proprietary limited?
Proprietary. The ‘proprietary’ in ‘proprietary limited’ prefers to the company being private – meaning that a limited number of shareholders own the shares of a specific company. Private companies may only have up to 50 shareholders and are only required to have one director.
Private companies may issue stock and have shareholders, but their shares do not trade on public exchanges and are not issued through an initial public offering (IPO). As a result, private firms do not need to meet the Securities and Exchange Commission’s (SEC) strict filing requirements for public companies.