Privately held company

A privately held company (or simply a private company) is a company whose shares and related rights or obligations are not offered for public subscription or publicly negotiated in their respective listed markets. Instead, the company's stock is offered, owned, traded or exchanged privately, also known as "over-the-counter". Related terms are unlisted organisation, unquoted company and private equity.

Private companies are often less well-known than their publicly traded counterparts but still have major importance in the world's economy. For example, in 2008, the 441 largest private companies in the United States accounted for $1.8 trillion in revenues and employed 6.2 million people, according to Forbes.[1]

Separately, all non-government-owned companies are considered private enterprises. That meaning includes both publicly traded and privately held companies since their investors are individuals.

State, private, and cooperative ownership

Private ownership of productive assets differs from state ownership or collective ownership (as in worker-owned companies). This usage is often found in former Eastern Bloc countries to differentiate from former state-owned enterprises,[citation needed] but it may be used anywhere in contrast to a state-owned or a collectively owned company.

In the United States, a privately held company refers to a business entity owned by private stakeholders, investors, or company founders, and its shares are not available for public purchase on stock exchanges. That contrasts with public companies, whose shares are publicly traded, which allows investing by the general public.

Ownership of stock

In countries with public trading markets, a privately held business is generally taken to mean one whose ownership shares or interests are not publicly traded. Often, privately held companies are owned by the company founders or their families and heirs or by a small group of investors. Sometimes, employees also hold shares in private companies.[2][page needed] Most small businesses are privately held.

Subsidiaries and joint ventures of publicly traded companies (for example, General Motors' Saturn Corporation), unless shares in the subsidiary itself are traded directly, have characteristics of both privately held companies and publicly traded companies. Such companies are usually subject to the same reporting requirements as privately held companies, but their assets, liabilities, and activities are also including the reports of their parent companies, as are required by the accountancy and securities industry rules relating to groups of companies.

Form of organization

Private companies may be called corporations, limited companies, limited liability companies, unlimited companies, or other names, depending on where and how they are organized and structured. In the United States but not generally in the United Kingdom, the term is also extended to partnerships, sole proprietorships or business trusts. Each of those categories may have additional requirements and restrictions that may impact reporting requirements, income tax liabilities, governmental obligations, employee relations, marketing opportunities, and other business obligations and decisions.

In many countries, there are forms of organization that are restricted to and are commonly used by private companies, for example, the private company limited by shares in the United Kingdom (abbreviated Ltd) or unlimited company and the proprietary limited company (abbreviated Pty Ltd) or unlimited proprietary company (abbreviated Pty) in South Africa and Australia.

In India, private companies are registered by the Registrar of Companies, which is under the Ministry of Corporate Affairs. Indian private companies must contain the word Private Limited at the end of their names.[3]

Reporting obligations and restrictions

Privately held companies generally have fewer or less comprehensive reporting requirements and obligations for transparency, via annual reports, etc. than publicly traded companies do. For example, in the United States, privately held companies are not generally required to publish their financial statements. By not being required to disclose details about their operations and financial outlook, private companies are not forced to disclose information that may potentially be valuable to competitors and so can avoid the immediate erosion of customer and stakeholder confidence in the event of financial duress. Further, with limited reporting requirements and shareholder expectations, private firms are afforded a greater operational flexibility by being able to focus on long-term growth rather than quarterly earnings.

In addition, private company executives may steer their ships without shareholder approval, which allows them to take significant action without delays.[4][5]

In Australia, Part 2E of the Corporations Act 2001 requires publicly traded companies to file certain documents relating to their annual general meeting with the Australian Securities and Investments Commission (ASIC). There is a similar requirement for large proprietary companies, which are required to lodge Form 388H to the ASIC containing their financial report. In the United States, private companies are held to different accounting auditing standards than public companies, overseen by the Private Company Counsel division of the Financial Accounting Standards Board.(see external links)

Researching private companies and private companies' financials in the United States can involve contacting the secretary of state for the U.S. state of incorporation (or for LLC or partnership, state of formation), or using specialized private company databases such as Dun & Bradstreet. Other companies, like Sageworks, provide aggregated data on privately held companies, segmented by industry code.[6] By contrast, in the United Kingdom, all incorporated companies are registered centrally with Companies House.[7]

Privately held companies also sometimes have restrictions on how many shareholders they may have. For example, the U.S. Securities Exchange Act of 1934, section 12(g), limits a privately held company, generally, to fewer than 2000 shareholders, and the U.S. Investment Company Act of 1940, requires registration of investment companies that have more than 100 holders. In Australia, section 113 of the Corporations Act 2001 limits a privately held company to 50 non-employee shareholders.

Privately owned enterprise

A privately owned enterprise is a commercial enterprise owned by private investors, shareholders or owners (usually collectively, but they can be owned by a single individual), and is in contrast to state institutions, such as publicly owned enterprises and government agencies. Private enterprises comprise the private sector of an economy. An economic system that 1) contains a large private sector where privately run businesses are the backbone of the economy, and 2) a business surplus is controlled by the owners, is referred to as capitalism. This contrasts with socialism, where the industry is owned by the state or by all of the community in common. The act of taking assets into the private sector is referred to as privatization.

A privately owned enterprise is one form that private property may take.

Types of privately owned businesses

  • Sole proprietorship: A sole proprietorship is a business owned by one person. The owner may operate on his or her own or may employ others. The owner of the business has total and unlimited personal liability for the debts incurred by the business. This form is usually relegated to small businesses.
  • Partnership: A partnership is a form of business in which two or more people operate for the common goal of making a profit. Each partner has total and unlimited personal liability for the debts incurred by the partnership. There are three typical different types of classifications for partnerships: general partnerships, limited partnerships, and limited liability partnerships.
  • Corporation: A business corporation is a for-profit, limited liability or unlimited liability entity that has a separate legal personality from its members. A corporation is owned by one or more shareholders and is overseen by a board of directors, which hires the business's managerial staff. Corporate models have also been applied to the state sector in the form of government-owned corporations. A corporation may be privately held (for example, a close company - see below) or publicly traded.
  • Hybrid Types: Some countries, like Germany, the United States, and the United Kingdom have created a hybrid type of entity that has characteristics of both a corporation and a partnership. In Germany, it is called a Gesellschaft mit beschränkter Haftung (Gmbh), in the United States it is called a Limited Liability Company (LLC), and in the United Kingdom it is called a Limited Liability Partnership (LLP). It is considered a corporate body similar to a corporation but is typically taxed like a partnership.

Close companies

In the United Kingdom, a close or closely held company is defined as a company which is controlled by either five or fewer shareholders or is controlled by shareholders who are also directors.[8]

See also

References

  1. ^ Reifman, Shlomo; Murphy, Andrea D., eds. (6 November 2008). "America's Largest Private Companies". Forbes. Archived from the original on 20 March 2019. Retrieved 30 January 2018.
  2. ^ Loewen, Jacoline (2008). Money Magnet: Attract Investors to Your Business. Canada: John Wiley & Sons. ISBN 9780470155752.
  3. ^ "Ministry of Corporate Affairs - MCA Services". Archived from the original on 2021-09-01. Retrieved 2021-09-03.
  4. ^ "Introduction to Private Companies". Private Company Knowledge Bank. PrivCo. Archived from the original on 2019-03-20. Retrieved 2011-03-11.
  5. ^ "Private Company Research". Business Reference Services. Library of Congress. 10 Jan 2013. Archived from the original on 21 February 2019. Retrieved 30 December 2017.
  6. ^ "Sageworks Private Company Data". Fox Business Network. 1 Feb 2012. Archived from the original on 2015-10-29.
  7. ^ "Companies House: About Us". Retrieved 19 February 2024.
  8. ^ "Corporation Tax Act 2010". Retrieved 19 February 2024.

Read other articles:

The Coast Guard Judge Advocate General oversees the delivery of legal services to the United States Coast Guard, through the Office of the Judge Advocate General in Washington, the Legal Service Command, offices in the Atlantic and Pacific Areas, nine Coast Guard Districts, the Coast Guard Academy, three training centers, and a number of other activities and commands. Legal services are delivered by Coast Guard judge advocates and civilian counsel in ten legal practice areas: criminal law/mil...

 

أمير أسقف لوبيكأمير أوتين كريستيان أوغست (بالألمانية: Christian August von Schleswig-Holstein-Gottorf)‏  معلومات شخصية الميلاد 11 يناير 1673  قلعة غوتورب  [لغات أخرى]‏  الوفاة 24 أبريل 1726 (53 سنة)   قلعة غوتورب  [لغات أخرى]‏  مكان الدفن كاتدرائية لوبيك  [لغات أخرى]‏...

 

Опис Sportlider+. Емблема ФК Спортлідер+ Джерело http://www.extra-liga.org.ua/teams/sportlider Час створення 2005 р. Автор зображення ФК Спортлідер+ Ліцензія Відповідно до статті 8 Закону України про авторське право і суміжні права, наступні об'єкти не охороняються авторським правом: 1) повідомлення �...

بولا     الإحداثيات 39°00′34″N 9°00′02″E / 39.009447°N 9.0005493°E / 39.009447; 9.0005493  [1] تقسيم إداري  البلد إيطاليا[2][3]  خصائص جغرافية  المساحة 138.92 كيلومتر مربع (9 أكتوبر 2011)[4]  ارتفاع 10 متر  عدد السكان  عدد السكان 7338 (1 يناير 2018)[5]  الكثافة

 

Hydrozoa Plumularia setacea (en) TaksonomiSuperkerajaanEukaryotaKerajaanAnimaliaFilumCnidariaKelasHydrozoa Owen, 1843 Subkelas dan ordo[1] Hydroidolina Anthoathecata Leptothecata Siphonophorae Trachylinae Actinulida Limnomedusae Narcomedusae Trachymedusae lbs Hydrozoa adalah kelas dari anggota hewan tak bertulang belakang yang termasuk dalam filum Cnidaria. Sebagian besar hewan Hydrozoa hidup di laut dan berkoloni. Siklus hidup sebagian besar Hydrozoa mencakup tahap polip yang aseksua...

 

Кубок Полтавської області Засновано 1939Регіон Полтавська область, УкраїнаПоточний чемпіон «Олімпія» (Савинці)Сайт ffp.org.ua Кубок Полтавської області з футболу — обласні футбольні змагання серед аматорських команд. Проводиться під егідою Асоціації футболу Полтавщини. ...

Former denomination of Australian currency One dollar(Australia)Value1 Australian dollarWidth140 mmHeight70 mmSecurity featuresmetallic security thread, WatermarkMaterial usedCotton fibreYears of printing1966–1984ObverseDesignElizabeth II and the Coat of Arms of AustraliaDesignerGordon AndrewsDesign date1965ReverseDesignYolngu artwork by David MalangiDesignerDavid Malangi[1]Design date1965 The Australian one-dollar note was introduced in 1966 due to decimalisation, to repl...

 

The Selfish Gene PengarangRichard DawkinsSubjekBiologi evolusionerPenerbitOxford University PressTanggal terbit1976Halaman224ISBNISBN 0-19-857519-XOCLC2681149Diikuti olehThe Extended Phenotype  The Selfish Gene adalah buku mengenai evolusi karya Richard Dawkins. Buku ini dibuat berdasarkan teori George C. Williams dalam bukunya Adaptation and Natural Selection. Dawkins menggunakan istilah gen egois sebagai cara untuk mengekspresikan pandangan evolusi berpusat-pada-gen yang mene...

 

Was Gott tut, das ist wohlgetanBWV 98Church cantata by J. S. BachAutograph manuscript of the first movement of the cantataOccasion21st Sunday after TrinityCantata textChristoph BirkmannChoraleby Samuel RodigastPerformed10 November 1726 (1726-11-10): LeipzigMovements5VocalSATB choir and soloInstrumental2 oboestaille2 violinsviolacontinuo Johann Sebastian Bach composed the church cantata Was Gott tut, das ist wohlgetan (What God does is well done),[1] BWV 98, in Leip...

De BijenkorfTypePrivateIndustryRetailGenreDepartment storesFounded1870; 153 years ago (1870)HeadquartersAmsterdamProductsClothing, footwear, bedding, furniture, jewelry, beauty products, house waresParentSelfridges GroupWebsitewww.debijenkorf.nl De Bijenkorf (Dutch pronunciation: [də ˈbɛijə(ŋ)kɔr(ə)f]; literally, the beehive[1]) is a chain of high-end department stores in the Netherlands, with its flagship store on Dam Square in Amsterdam. The chain is...

 

2002 film score by John WilliamsMinority Report (Original Motion Picture Score)Film score by John WilliamsReleasedJune 18, 2002Recorded2002StudioSony Scoring StageCulver City, CaliforniaGenreFilm scoreLength73:56LabelDreamWorksJohn Williams chronology Star Wars Episode II: Attack of the Clones(2002) Minority Report(2002) Harry Potter and the Chamber of Secrets(2002) Minority Report (Original Motion Picture Score) is the score album to the 2002 film of the same name directed by Steven ...

 

PS Muaro JambiNama lengkapPersatuan Sepak Bola Muaro JambiJulukanGajah Sumatra Laskar Bujang MudoStadionStadion Tri Lomba Juang KONI, Kota Jambi(Kapasitas: 15.000 orang)PelatihHengky Ardiles[1]LigaLiga 320212nd, (zona Jambi) Kostum kandang Kostum tandang PS Muaro Jambi (singkatan dari Persatuan Sepak bola Muaro Jambi) adalah sebuah klub sepak bola Indonesia yang bermarkas di Kota Jambi, Provinsi Jambi. Saat ini PS Muaro Jambi berkompetisi di Liga 3 Zona Jambi. Klub ini memainkan perta...

Railway station in Karnataka, India Kalaburagi JunctionGulbarga Junction Indian Railways stationGeneral informationLocationStation Road, KalaburagiIndiaCoordinates17°18′54″N 76°49′26″E / 17.315°N 76.824°E / 17.315; 76.824Elevation454 metres (1,490 ft)Owned byIndian RailwaysOperated byCentral RailwayLine(s)Solapur–Guntakal section of Mumbai–Chennai line Kalaburagi -Bidar LinePlatforms4Tracks5ConstructionStructure typeStandard on groundParkingYesBicy...

 

Bronze sculpture attributed to Giambologna Bathing Venus (Bronze) by Giambologna (1597) Dimension: 1,12 m height Owner: Private CollectionFemale Figure, also known as Venus or Bathseba (Marble) by Giambologna (1571-1573) with modern replacements (e.g. vessel erroneously replaced), J. Paul Getty Museum The Bathing Venus is a large bronze sculpture attributed to Giambologna (1529-1608), the leading late Renaissance sculptor in Europe. Archival documents suggest that it was presented to King Hen...

 

Railroad station on the North Side of Chicago For the closed CTA station, see Ravenswood station (CTA). RavenswoodGeneral informationLocation4800 North Ravenswood AvenueChicago, Illinois 60640Coordinates41°58′06″N 87°40′27″W / 41.9684°N 87.6743°W / 41.9684; -87.6743Owned byMetraPlatforms2 side platformsTracks2ConnectionsChicago L: Damen (Brown Line) CTA BusesConstructionAccessibleYesOther informationFare zoneBHistoryRebuilt1970, 2012–2023Passengers20182,6...

President of theCentral African RepublicPrésident de laRépublique centrafricainePresidential standardIncumbentFaustin-Archange Touadérasince 30 March 2016ResidenceRenaissance Palace, BanguiSeatBanguiTerm lengthFive years, renewable once (before 2023)Inaugural holderDavid DackoFormation12 December 196021 September 1979 (office reestablished)SalaryEUR €3,049 per month[1] Politics of the Central African Republic Constitution Human rights LGBT rights Government President Faustin...

 

CBC Radio One station in Whitehorse, Yukon, Canada CFWH-FMWhitehorse, YukonBroadcast areaYukonFrequency94.5 MHz (FM)BrandingCBC Radio OneCBC NorthProgrammingFormatNews/TalkOwnershipOwnerCanadian Broadcasting CorporationSister stationsCFWH-TV (defunct)HistoryFirst air dateFebruary 24, 1944; 79 years ago (1944-02-24)Former call signsCFWH (1944-2012)Former frequencies1240 kHz (1944-1963)570 kHz (1963-2012)Call sign meaningCanadian Forces Whitehorse[1]Technical informati...

 

Decorative hangings A wall hanging craft is a decoration, an amulet, a religious or a symbolic object that is hung from the ceiling or another structure. The sculptor Alexander Calder invented the mobiles, popular in the nursery, to give infants something to entertain them and give them external visual stimulation.[1] Kakemono, a Japanese hanging, is intended to be hung against a wall as part of the interior decoration of a room.[2] Hanging crafts are also called by the names ...

پرينس مايكل چوزيف چاكسون معلومات شخصيه الميلاد 13 فبراير 1997 (27 سنة)  كاليفورنيا،  ولوس انجليس  مواطنه امريكا  الاب مايكل چاكسون  اخوه و اخوات باريس جاكسون  عيله عيلة چاكسون  الحياه العمليه النوع بوب،  وموسيقى السول،  وريذم اند بلوز،  وفانك،  وديسك...

 

Estructura de Lewis de las principales especies reactivas de oxígeno.1: ión peróxido (O22-); 2: dioxígeno (O2); 3: anión superóxido (O2•-);4: peróxido de hidrógeno (H2O2); 5: radical hidroxilo (HO•) En el contexto de la química y la biología, se conoce como especies reactivas de oxígeno (ERO o ROS por reactive oxygen species) al grupo de moléculas organícas e inorgánicas formado por iones de oxígeno, radicales libres y peróxidos altamente reactivos. Generalmente son moléc...