Exemptions of Private Company

The legal concessions that are enjoyed by a private company as against a public company are as follows:

1. In order to form a private company only two signatories to the memorandum of association are required;
2. A private company is not required ti have more than 2 directors;
3. A private company is not required to hold a statutory meeting or prepare and file a statutory report;
4. There is no restriction on the appointment and advertisement of the first directors of a private company;
5. A private company is not required to file with registrar a statement in lieu of prospectus;
6. There is no restrictions on allotment of shares.
7. A private Company starts business with borrowing
8. Not bound to send annual account to Stock Exchange and report to members.