private company: meaning, definition, pronunciation and examples
B2Formal/Neutral
Quick answer
What does “private company” mean?
A business entity owned by private individuals or shareholders, not publicly traded on a stock exchange.
Audio
Pronunciation
Definition
Meaning and Definition
A business entity owned by private individuals or shareholders, not publicly traded on a stock exchange.
An organization operating commercially for profit, with ownership and shareholding restricted to a defined group of individuals, families, or investors, rather than being available to the general public. It often implies greater control for owners and less regulatory disclosure than a public company.
Dialectal Variation
British vs American Usage
Differences
UK: Often synonymous with 'limited company' (Ltd) or 'private limited company' (PLC is for public). US: Often termed 'privately held company' or 'closely held corporation'. The legal structures differ (e.g., LLC, C-Corp, S-Corp).
Connotations
Similar in both, suggesting owner control, potential for less bureaucracy, and often smaller size (though large private companies exist like Mars or Cargill).
Frequency
Slightly more common in US business discourse as 'privately held company'. 'Private company' is perfectly standard in both.
Grammar
How to Use “private company” in a Sentence
[Subject] owns/runs/is a private company.They bought/sold/shares in a private company.The private company [verb: operates, focuses on, is based in]...Vocabulary
Collocations
Examples
Examples of “private company” in a Sentence
verb
British English
- The founders decided to private the company after the buyout.
- They are considering privating the business to avoid market pressure.
American English
- The investors moved to take the company private.
- The board voted to privatize the publicly listed entity.
adverb
British English
- The firm is privately company-owned. (Uncommon/awkward)
- It operated privately-company-wise. (Not standard)
American English
- The shares are held privately, not company-wide. (Not a direct adverbial form)
- The asset was transferred privately, not through the company. (Not a direct adverbial form)
adjective
British English
- It's a private-company structure.
- They discussed private-company valuation methods.
American English
- He has private-company experience.
- The report focused on private-company governance.
Usage
Meaning in Context
Business
Primary context. Discussing ownership structures, fundraising (venture capital, private equity), mergers and acquisitions, and corporate governance.
Academic
Used in economics, business studies, and law to discuss corporate forms, market structures, and privatization.
Everyday
Used when distinguishing a local business from a large public corporation. 'He works for a private company, not a big name you'd know.'
Technical
In legal/financial documents, specifying the exact corporate status (e.g., 'a private company limited by shares').
Vocabulary
Synonyms of “private company”
Strong
Neutral
Weak
Vocabulary
Antonyms of “private company”
Watch out
Common Mistakes When Using “private company”
- Confusing 'private company' with 'secretive company'. Using 'private' to mean 'not government' only (it also means 'not publicly traded'). Saying 'private limited' redundantly in US context.
FAQ
Frequently Asked Questions
Not necessarily. 'Private company' refers to ownership structure (not publicly traded). A private company can be a small local shop or a huge multinational like IKEA or Bosch.
Yes. A private company can have multiple shareholders (e.g., founders, employees, private equity investors). The key is that the shares are not listed on a public stock exchange.
It describes the process where a publicly traded company is purchased and its shares are delisted from the stock exchange, returning it to private company status.
The direct opposite is a 'public company' or 'publicly traded company', whose shares are listed on a stock exchange and can be bought by any member of the public.
A business entity owned by private individuals or shareholders, not publicly traded on a stock exchange.
Private company is usually formal/neutral in register.
Private company: in British English it is pronounced /ˈpraɪvət ˈkʌmp(ə)ni/, and in American English it is pronounced /ˈpraɪvət ˈkʌmpəni/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “Go private (when a public company is taken private)”
- “Stay private (decision not to IPO)”
Learning
Memory Aids
Mnemonic
Think: PRIVATE ownership = the company's shares are kept in PRIVATE hands, not sold to the PUBLIC.
Conceptual Metaphor
A FAMILY (private, closed circle) vs. A TOWN MEETING (public, open to all).
Practice
Quiz
What is a key legal distinction of a private company?