The legal concessions that are enjoyed by a private company as against a public company are as follows:
- In order to form a private company only two signatories to the memorandum of association are required;
- A private company is not required ti have more than 2 directors;
- A private company is not required to hold a statutory meeting or prepare and file a statutory report;
- There is no restriction on the appointment and advertisement of the first directors of a private company;
- A private company is not required to file with registrar a statement in lieu of prospectus;
- There is no restrictions on allotment of shares.
- A private Company starts business with borrowing
- Not bound to send annual account to Stock Exchange and report to members.
