Pvt Ltd Company vs. Public Ltd Company
Key Differences
Comparison Chart
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Maximum Shareholders
Stock Exchange
Certificate
Transfer of Shares
What is Pvt Ltd Company?
The private individuals own the private limited company; to commence their operations at least two of the members are required along with the certificate of incorporation. The hand-picked people hold the shares of the private limited company. Mainly the shareholders in the private limited company are the close relatives, friends or the family members. The shares of the private limited company can’t be put up on the stock exchange, and if one of the shareholders wants to sell or transfer his share, the consent of all the shareholders is compulsory. The two of the shareholders can commence the private limited company. At the same time, the private limited company can have a maximum of fifty shareholders. In the mechanism and for the issuance of the prospectus, the general public can’t be engaged in this type of company. In the private limited company at least two directors are up on the charge and they have no compulsion of retirement at the specific age. The company enjoys various privileges which are usually lacking in the public Ltd company. The private limited companies have the compulsion to write the ‘Private Limited’ as the suffix to their names.
What is Public Ltd Company?
The general public owns the public LTD companies. So there is no limitation on the maximum members the company can have, and the shares can be freely transferred from one to another without the consent of any other shareholders. For the selling of shares or debentures, the general public can be engaged. To set up the public Ltd company at least seven members are required, and Certificate of commencement of business in addition to the Certificate of Incorporation is required mandatory in order to be operational. There are at least three directors in this type of the company and the one becoming the director needs to have the minimum number of shares. The public limited company is free to share the warrants, at the same time the transfer of shares is done easily as the shares are open up to the general public. There are not any specific privileges for the public limited company, and their results are the public document, and one of te general public can inspect them. The limited company has to follow the instructions of holding meetings at the regular intervals and also file regular reports to the Registrar. The ‘limited’ is added as the suffix in the name of the public limited company.
