A private company registration is the most common and simplest form of company to be registered. It is comparable to a close corporation. NOTE: Close corporations can no longer be registered.
- If the company is owner managed, an audit is no longer required, resulting in cost savings. However financials statements still have to be prepared.
- Most private companies are owner managed and tend to have a smaller number of directors.
- Private Companies may not offer shares to the public and restrictions are also placed on the transferability of their shares.
- Private companies must have at least one director and one incorporator. The director and incorporator may be the same person. The word “person” includes a juristic entity. This means that a legal entity or a trust may be an incorporator of a new company.
All companies must have a Memorandum of Incorporation (MOI) which sets out the rules agreed by the shareholders for the management and maintenance of the business. Private companies may be registered with a standard or a customised MOI. The standard MOI is provided by law and is integrated into the company registration process. This company is registered with a standard MOI, refer to the ‘What are you purchasing” tab below