Can I hold 100 percent shares in Private Limited Company?

Tilak Marg Forum for Legal Questions Forums Business Law Can I hold 100 percent shares in Private Limited Company?

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    • #1577
      Anonymous
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      I want to form a Private Limited Company all by myself and I am willing to invest all the money. But, there is a requirement that there should be at least 2 shareholders and 2 directors in a private limited company. So, how can I ensure that I make it clear that I shall be holding 100% shares but I appoint a dummy person as a director?

    • #1578

      Now, with the new Companies Act, 2013, it is also possible to have One Person Company which has only one shareholder, who can have 100% equity capital of such company. So, why don’t you start a One Person Company instead of a Private Limited Company?

      In any case, if you still want to start a Private Limited Company with 100% shareholding, then the better practical option would be induct some family member or very close friend or trusted person as the second shareholder (and, who would also be a director) and keep most of the shares with you, which may be, say, 99% of the shares, while remaining miniscule percentage of shares can be given to such other trusted person. The Articles of Association of such company can be drafted appropriately to ensure that you retain most of the powers, to the extent permissible under law to one director.

           


      Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.

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