Private limited companies are owned by who? There’s more to it than meets the eye. In a limited company, there are various roles that can be considered as ‘owners’.
The Directors
Members or the company’s creation must appoint the directors of a private limited company. Managing the company is the responsibility of the directors.
When they are appointed, they are usually given shares in the company, giving them a sense of ownership.
The Shareholders
Private limited companies are owned by their shareholders, who have part ownership rights. By purchasing shares, they typically own a certain amount of the company.
A dividend is also paid to shareholders when a company makes a profit (if any). Depending on how many shares they own, they will receive a different percentage of profits.
The Company Secretary
Company records are kept by the secretary. Documents related to the company are kept by him/her, including minutes of meetings.
Company secretaries can also be shareholders, meaning they do own a part of the company, just as other shareholders do.
The Person/People of Significant Control (PSC)
An individual or group, or sometimes an organization, is called a person of significant control, or a ‘beneficial owner’. More than 25% of the shares or voting rights are owned or controlled by a person, a group of people, or even another entity.
The majority of the board of directors can also be appointed or removed by them. A PSC register must contain information about persons of significant control. For more information on PSCs, see Companies House’s explainer video here.
Can one person do everything?
A different person does not need to be assigned to each role. It is possible for one individual to work as a director, shareholder, secretary, and person of significant control at the same time.
One person often performs multiple duties in a start-up, if not all.
How are owners of a limited company appointed?
Limited companies need to notify Companies House of any changes to their ownership if a new shareholder is appointed, for instance, a director. A confirmation statement or a Web filing can be used to do this. In our Pro and Starter formation packages, we include company secretarial services, which means our team of experts will file every change with Companies House on your behalf!
New limited companies are created by appointing owners when they are formed. Roles and information about the owners are entered in a specific section.
You might be thinking you would like to own your own pvt ltd company now that you have a better understanding of who owns one.
Starting your own private limited company
Limited companies are formed by appointing ownership roles during the application process. Getting started has never been easier or faster than it is now, and our expert customer care team is on hand to answer any questions you may have.
You can check out all our company registration in india bundles on our homepage and become a limited company owner today!
Also Read:
Why Opt for a Private Limited Company Over Proprietorship?
The Nidhi Company Registration and Processing Fees
Documents Required for Change in Registered Office of a Company