a vehicle intended for use by a small number of people engaging in activities of a more private nature and is entitled to more privileges and exemptions than a public company
A proprietary (or private) company is limited to no more than 50 members and operates with restricted rights of transfer of shares. It can neither invite the general public to subscribe for its shares or debentures nor take deposits from the public. It is the most common form of company type.
A proprietary company is a company with less than fifty non-employee shareholders. Its ability to offer shares is limited. The transfer of ownership of shares is often restricted. Many small to medium sized enterprises are owned by proprietary company structures. Proprietary companies are often referred to as private companies. Proprietary companies have limited reporting and audit requirements to fulfil. Proprietary companies must change their registration status if they wish to have more than 50 non-employee shareholders.