private company

A company incorporated by the Companies Acts which does not satisfy the statutory requirements of a public company, which usually means that the company does not have the requisite share capital.

A private company's name must be followed by the word 'Limited' or the abbreviation 'Ltd'. It may have one director. There is no minimum requirement for the share capital, but it cannot be zero.

Private companies may not publicly trade shares, however private share sales are a frequent occurrence.

Usage: The private company commenced trading upon incorporation.

Related Words: public company; company; separate legal personality.