An exempt private company, often abbreviated as EPC, is a privately held company exempt from certain regulatory requirements that typically apply to public companies. The criteria for qualifying as an exempt private company can vary depending on the jurisdiction, but generally, they are smaller, closely-held businesses with limited shareholders.

Key characteristics of exempt private companies may include:

Limited number of shareholders: Exempt private companies often have restrictions on the number of shareholders they can have. For example, they may be limited to 50 shareholders.

Restrictions on share transfer: Shares of exempt private companies may be subject to restrictions on transferability. This means that shareholders may not freely sell or transfer their shares without the approval from the other shareholders.

Exemptions from certain regulatory requirements: Exempt private companies are typically exempt from certain regulatory requirements that apply to public companies, such as filing extensive financial disclosures with regulatory authorities or holding annual general meetings.

Private nature: Exempt private companies are not listed on public stock exchanges and do not offer their shares to the general public. Instead, ownership is typically limited to a small group of individuals or entities, often including founders, family members, and private investors.

Limited disclosure requirements: While exempt private companies may still be required to file certain documents with regulatory authorities, such as annual financial statements or tax returns, the level of disclosure is generally less extensive than that required of public companies.