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Closely Held Company: Meaning and Definition

Meaning and Definition of Closely-Held Company

Company in which the public are not substantially interested is known as a 'Closely Held Company'.

It is not a defined term. Generally, when a small number of shareholders own a company, it is called a closely held company. It is also informally known as a Privately held company.

The opposite of a closely held company is widely held companies in which public are substantially interested.

Taxation: A closely held company do not enjoy as much tax benefits as a widely held company is allowed to.

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