You must also choose the type of company structure which you want to adopt. The table below shows the different types of companies.
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Type of Company
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Private Company
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Public Company
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Private Company Limited by Shares
Has a maximum of 50 shareholders.
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Exempt Private Company (EPC)
is one which:
- Has a maximum of 20 shareholders.
- No corporation is a shareholder.
- The Minister has deemed to be an EPC under the Companies Act.
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Public Company Limited by Shares
- May have more than 50 shareholders.
- May raise capital by offering shares or debentures to the public.
- Must before making any public offers.
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Public Company Limited by Guarantee
- Is usually formed to carry out non-profit making activities such as promoting arts, etc.
- Is one which has members instead of shareholders. These members agree to pay a fixed sum in case the company is wound up
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