Private limited company

What is a private limited company?

A private limited company is a type of legal entity for a company where the shares are not freely tradable. The owners of a limited company are referred to as shareholders and are only liable for the amount they have invested in the company. This means that their personal assets are protected from creditors in case of bankruptcy.

A private limited company has a board that is responsible for the day-to-day management of the company, and a general meeting of shareholders that sets the company’s policy and makes important decisions. A private limited company is required to keep and file financial reports with the Chamber of Commerce and must comply with legal rules and regulations. A private limited company can be established by notarial deed and requires a minimum start-up capital of €0.01. This legal entity is often used as a structure for small and medium-sized enterprises.