Contracts Specialist Official Logo AU
NSW 2009, Australia

100 Harris St, Pyrmont

02 8096 8576

24/7 Customer Support

Mon - Fri: 8:00 - 18:00

You can call us 24/7 for urgent matters

Contracts Specialist Official Logo AU
Call Now:
02 8096 8576
Book your
free first consult

Pty Ltd Companies

Share on facebook
Facebook
Share on twitter
Twitter
Download Article
Pty Ltd companies are the most common type of company liability structure adopted in Australia. Whatever type of construction company you have, you can always count on a construction lawyer to help you with any building problem.
CALL NOW: 02 8096 8576

Table of Contents

What is Pty Ltd?

Pty Ltd is an abbreviation for ‘proprietary limited’. It is commonly found in company names and indicates the liability scheme adopted by a company. The other liability schemes are Ltd or ‘limited’ which means no liability scheme.

Proprietor icon | Contracts Specialist

PROPRIETARY

Pty Ltd consists of two parts – ‘proprietary’ and ‘limited’. Proprietary means that the company is private, consisting only of no more than 50 non-employee shareholders. A private company does not offer its shares to the general public; therefore, it cannot list its shares in the Australian Stock Exchange.

Shareholders icon | Contracts Specialist

LIMITED

The second part of Pty Ltd is ‘limited’. This indicates the extent of liability that rests on the shareholders of the company. The shareholders’ legal responsibility for the liabilities of the company is limited to the value of the shares that each shareholder owns,which means that they cannot be made liable in their personal capacities. Their liability is limited to their shares to the company. Thus, a Pty Ltd company’s liabilities and obligations cannot be enforced against the personal assets of its shareholders.
Company structure comparison icon | Contracts Specialist

PTY LTD Vs. LTD

While Pty Ltd companies are limited only to 50 shareholders, there is no such limit for the number of shareholders for Ltd companies. Ltd companies can raise the company’s capital by selling their shares to the general public. They can also list their shares in the Australian Stock Exchange. Like Pty Ltd companies, shareholders of Ltd companies also have limited liability enforceable only to the extent of their shares.

Advantages of being a Pty Ltd Company

Being a Pty Ltd company does not necessarily limit a company’s size. Pty Ltd companies can operate as small-scale companies or large-scale companies. The advantage of being a Pty Ltd company is in the privacy and control that shareholders have over the company due to the limited number of shareholders allowed. Pty Ltd companies are not as strictly regulated as Ltd companies. Pty Ltd companies also have limited disclosure obligations compared to publicly listed companies.

Company Name versus Business Name

A company name is usually followed by Pty Ltd or Ltd to indicate the company’s legal liability structure. Companies are required to be registered with the ASIC.

On the other hand, a business or trading name is the name under which one chooses to conduct business. The business or trading name may be different from the registered company name and in such instance, must also be registered with the ASIC.

Construction Company building | Contracts Specialist

How can Contracts Specialist help Pty Ltd Companies?

Whether you’re a contractor with a Pty Ltd company or an individual contractor, our construction lawyer can help you on:
Contract Review icon | Contracts Specialist
Construction Contract Review
Payment dispute resolution icon | Contracts Specialist
Payment Disputes and the adjudication process
Fair Trading and NCAT proceedings icon | Contracts Specialist
Fair Trading and NCAT proceedings
Download Article
CALL NOW: 02 8096 8576

Recent Posts​

ABIC NSW Contracts: Architect’s Guide

Find out what you need to know on:

  1. How to administer the ABIC Contract
  2. ABIC Contract Dispute Resolution
  3. How to assess a progress claim under the ABIC Contract
  4. Other important terms in the ABIC Contract

Send us a message. We’d love to hear from you.​

You can be confident that you are getting
the right legal advice.

Contracts Specialist is a Sydney-based construction law firm that deals with Building Disputes, Construction Contracts, Debt Recovery, and Security of Payment. With Contracts Specialist, you are ensured that you are in good hands.

Working hours

8am - 8pm Monday to Friday
(Phone until 18:00 Hrs)
Friday - 8:00-18:00

We are here

100 Harris St, Pyrmont, NSW 2009, Australia
Phone:+02 8096 8576 I Call us 24/7 for urgent matters
Email: john@contractsspecialist.com.au

Facebook-f
Twitter
Youtube
Linkedin
Instagram
Master Builders Association Logo - Membership NSW
Small Builders Building Software Official Logo
The Law Society of New South Wales Logo
100 Harris St, Pyrmont NSW 2009 Australia
ABOUT
CONTACT US
PRIVACY POLICY
TERMS

Copyright ©2021 Contracts Specialist. All Rights Reserved.

Fill out the Form to Download
Pty Ltd Companies
Download Article Now
Bitnami