Private Limited Company

Slides:

Advertisements

Similar presentations

The legal forms of organisation Chapter 12 © Luby & O’Donoghue (2005)

Advertisements

RE-CAP What is a partnership?

(c) St Patrick's Cathedral Grammar School Form What is the procedure for forming a private company?

Forms of Business Ownership ~ The Corporation ~ & ~ The Stock Market ~

Starting a Business in Ireland Legal, Accounting, Tax and Banking Issues.

A Limited Company A Business owned by shareholders who each give the business money in exchange for Shares It is run by directors (who may also be shareholders)

Copyright 2005 – Biz/ed Business Ownership BTEC Business.

Types of organisation.

Corporations Most complicated form of business structure It is a legal entity (an individual) Owned by individual stockholders They have limited liability.

OH 22 Learning Objectives 1.Analysing the Rules Pertaining to a Company by: Comprehending the legal nature of a Company Interpreting the formation of a.

Formation of a Private Limited Company. Memorandum of Association External Rules of the company Name of the company Objectives : What the co. does Statement.

Corporation Page 125. A corporation is a business firm, legally recognized as a separate entity in its own right. Corporations can either be publicly.

Previous Lecture Partnership Vs Company. Company Law -3 Lecture # 27.

Sole Traders Private Limited Companies Co-Operatives State Owned Companies Franchises Forms of Ownership In this chapter we will look at:

Forms of Business 18. Forms of Business The four main forms of business organisation are:  Sole Trader  Private Limited Company  Co-operative  Semi-State.

Company means- An association of persons united for a common object. A Company formed and registered under Companies Act or an existing Company.

Private Limited Companies We will look at: Revision of Private Limited Companies Documents required to set up a Private Limited Company AGM’s.

 Register with Companies House  Company is a “separate” legal person so far as the law is concerned – i.e. it is separate from its shareholders  Issued.

AC120 lecture 25 Nature of limited companies Final accounts of limited companies Source: –Thomas, Chapters 26 and 27.

Business Administration

Economics Basics BUSINESS ORGANISATION. A firm is a unit of management. An organization which trades under a particular name, and which controls the way.

THE PRIVATE SECTOR Owned by individuals or groups of individuals, or the government has a shareholding.

 Sole Proprietorship  Partnership  Corporation S Corporation.

BUSINESS ORGANISATIONS Unit 6 – Domestic Environment.

Finance and the Financial Manager. “Any legal economic activity to earn profit is called business.” Kinds of Business:  Manufacturing Business  Services.

Public Company Vs Private Company

FORMING A COMPANY. STAGES INVOLVED IN THE PROCESS PROMOTION REGISTRATION OR INCORPORATION CAPITAL SUBSCRIPTION COMMENCENT OF BUSINESS.

Main Roles and responsibilities of those involved in LTD’s WILF: The meaning and responsibilities of: 1. CEO 2. Board of directors 3. Chief executive chair.

Chapter 6 Corporate Forms of Business Ownership 1 Chapter 6 Corporate Forms of Business Ownership ©2008 Thomson/South-Western.

Chapter 6 Corporate Forms of Business Ownership

Sole Trader Is a sole trader the largest or smallest type of business? How many owners does it have? A sole trader is the smallest type of business. It.

Entrepreneurvatcapital Self employed motivationcontrol businessstudiesteacher WHEN SOMEONE WANTS TO DO SOMETHING GO TO BALLS.

WebDesPix Ltd (WDP) WALT:

Agribusiness Library LESSON L060073: CORPORATIONS.

Ownership of Swaledale Cheese Company SCC are a Private Limited Company (Ltd) Owners (now called shareholders) have to be invited to buy shares in the.

Ch. 22 Section 1 Types of Businesses. Proprietorships # of businesses in America 73% -- sole proprietorships (single owned) 20% -- corporations 7% --

Legal Aspects of Business Organisations The Company.

 Publicly held corporation - one whose stock is widely held, has a large market, and is usually traded on the New York Stock Exchange or the American.

RE-CAP What is a partnership? What is an advantage of becoming a partnership? What is a disadvantage of becoming a partnership? What document do you need.

Chapter 18 Ownership structures © Edco 2012 It’s the Business.

 There are four forms of business organization, they are: ◦ Sole Proprietorship ◦ Partnership ◦ Corporation ◦ (Cooperative-not covered)  We will look.

@ 2012, Cengage Learning Corporations: Organization, Stock Transactions, and Dividends LO 1 – Understanding the Nature of a Corporation.

Corporations: Organization, Stock Transactions, and Dividends Chapter 13 1.

Private Limited Company Forms of Business Ownership.

MGT211 Introduction to Business Lecture 06. Promotion Stage Initiation of idea Further discussion with other people Collection of further information.

Formation of a Private Limited Company. Objectives At the end of this lesson, students should be able to…. Complete a Memorandum of association List private.

OEP AIM NCS COMPANIES. Limited Companies Aim:  Identify the characteristics of a Limited Companies Objectives:  Define the two types of Limited Companies.

A Basic Business Reader Chapter 3 Forms of Business Ownership (2)

Corporate Forms of Business Ownership. Corporation Business owned by a group of people and authorized by the state in which it is located to act as though.

Demystifying the Process of Establishing and Registering a Company in the UK Wednesday 25 th April 2012 / Dr. Jan Könighaus, M. Jur. (Oxon.), Chief Legal.

Welcome to our digital class Ali Ahad Mridha MAHM SCHOOL AND COLLEGE.

Types of Business Ownership IB Business & Management.

Limited Companies Mrs Reid. Learning Objectives –Identify the key feature of Limited Companies –Define limited liability and incorporation –Explain the.

Chapter 8: Business Organizations

Business Ownership BTEC Business.

Stockholders’ Equity: Paid-In Capital

Learning Objectives By the end of the lesson you will be able to….

Companies Act 1990 Next slide.

Private Limited Company ART By zaheda. What is a Private Limited Company?  A private limited company is where between one and ninety nine people come.

Forms of Business Ownership

Chapter 6 Corporate Forms of Business Ownership

Forms of Business Organisation

Getting Started.

Stockholders’ Equity: Paid-In Capital

Private Limited Company S. Y. B. Com

Corporations: Organization, Stock Transactions, and Dividends

The corporate structure

Business Ownership BTEC Business.

Presentation transcript:

Private Limited Company Forms of Business Ownership

What is a Private Limited Company? A private limited company is where between one and ninety nine people come together and form a business The owners are called shareholders and they invest money in the company The profit is divided up among the shareholders and distributed in the form of dividends “Ltd.” is written after the name of the company The annual accounts are sent to the Registrar of Companies. They are not published

Advantages of a Private Limited Company Shareholders have limited liability Extra capital is available to fund expansion of the business Continuity of existence

Disadvantages of a Private Limited Company Costly to set up A lot of legal requirements when forming a company Shares cannot be transferred to the general public

Forming a Private Limited Company Now the company can begin trading Promoters Hire… Certificate of Incorporation Solicitor Promoters Who completes… Sent to… Form A1 Memorandum of Association Articles of Association Companies Registration Office (CRO)

Managing Director/ Chief Executive Officer The owners of the company (1-99) Shareholders Elect… The people elected to run the company (max. 12) Board of Directors Appoint… The MD/CEO runs the company on a daily basis with the assistance of the department managers Managing Director/ Chief Executive Officer IT Manager Marketing Manager Finance Manager Production Manager

Forming a Private Limited Company You need 1 – 99 people who invest money and are shareholders The people involved in forming a company are called the promoters The promoters employ: An accountant – for financial advice A solicitor – to prepare the legal documents which must be sent to the Companies Registration Office (CRO)

What documents must be filled out? Memorandum of Association – sets out the relationship of the company to the general public, i.e. rules and regulations governing how the company deals with the public Articles of Association – sets out the internal rules and regulations of the company, e.g. shareholders voting rights, how directors are elected, powers and duties of the directors Form A1 – sets out the details of the company, it’s directors and their signatures (Declaration of Compliance with the Companies Acts 1963 – 1990)

These documents are sent to the Registrar of Companies The Registrar will check to see if they are all in order If so, a Certificate of Incorporation is issued This is the birth certificate of a company It has a separate legal existence from its owners The shareholders have limited liability The company can sue and be sued in its own name

Articles of Association Memorandum of Association Form A1 10

Board of Directors When the company is incorporated it will hold a meeting of its shareholders who elect a board of directors to run the company on a day-to-day basis They report to the shareholders annually on the performance of the company at the Annual General Meeting (AGM)

Summary What is a private limited company? How do you know if a business is a private limited company? Can you list three advantages and three disadvantages of operating as a private limited company? What documents are needed to form a private limited company? What is the certificate of incorporation? What do the board of directors do? What is an AGM?