Private limited company

Public limited company

In the case of a private company, the minimum number of persons required to form a company is two.

While it is seven in the case of a public company.

A private company has to have a minimum paid up capital of Rs. 1 lakh.

whereas a public company has to have a minimum paid up capital of Rs. 5 lakh.

In case of a private company the maximum number of members must not exceed fifty.

whereas there is no such restriction on the maximum number of members in case of a public company.

In private companies the right to transfer shares is restricted.

whereas in the case of a public company the shares are freely transferable.

A private company cannot issue a prospectus.

while a public company may invite the general public to subscribe for its Shares or Debentures.

A private company must have at least two Directors.

whereas a public company must have at least three Directors.

A private company can commence business immediately after receiving the certificate of incorporation.

while a public company can commence business only when it receives a certificate to commence business from the Registrar of Companies.

A private company need not hold a statutory meeting.

A public company must hold a statutory meeting and file a statutory report with the Registrar.

A public company must hold a statutory meeting and file a statutory report with the Registrar.

In a public company this number is five members.