Private Limited

Company
Nixon, Dion, Joaquin
have fun lol we tried
In this slide…
01 02 03
Ownership Control and Decision Legal
Who owns the business? Who makes the decisions? Any legal requirements?

04 05 06
Finance Advantages Disadvantages
Sources of finance?
 01
Ownership
Who owns the business?
Private limited companies are owned by
Shareholders. These people can buy shares
for ownership of the company.
 02
Control and Decision
Who makes the decisions?
Decisions are made by the original creators of the company.
As long as they are in the majority of shareholding, the
ownership status stays at them.
03
Legal
- There must be 2 or more important documents sent to the registrar of the company
Articles of association (rules under which the company will be managed duties and rules)
Memorandum of association (Important info like name and address)
- Shares i a private limited company cannot be sold or transformed to anyone else without the
agreement of the other shareholders
- Shares cannot be offered to the general public
- Accounts of the company are less secret than for either a sole trader or a partnership
04
 Finance
Private limited company get their finance from :
- Amount of Shares
-Bank Loans
-Venture capitalists
- friends and family
- Angel Investors

The Company’s Finance are separated from it’s owner’s finance

 05
advantages
Advantages of Private Limited Company

- Shares can be sold to a large amount of

people like friends, family and relatives.
- All shareholders have a limited liability
- Raise capitals from sales of shares
- Separate legal identity
- continuity of ownership
- The people who started the company are able
to keep control of it as long as they do not sell
to much shares to other people.
 06
Disadvantages
Disadvantages of Private Limited Company
- There are significant legal matters which have
to be dealt with before a company can be
formed.
- Rapidly expanding business, the company
cannot offer its shares to the general public..
- The accounts of a company are less secret
than any other forms of businesses.
- The shares in a private limited companies
cannot be sold or transferred to anyone else
without the agreement of the other
shareholders.
Thanks for listening!!
Here are some funny pictures to relieve your
stress. (note that these
pics are unrelated to
business)