Difference between private and public limited company
The difference between Public Limited company and Private limited company are listed below:
| Basis | Private Company | Public Company |
|---|---|---|
| Start of Business | This business can start business activities after receipt of the certificate of Incorporation(registration) | It can run business only after getting a certificate of Commencement which can be obtained after the certificate of registration. |
| Number of Members | Minimum 1 and Maximum 101 | Minimum 7 and maximum is not mentioned. |
| Size of the Business | These business can be smaller than the public company | Usually public company are larger than the private company and may spread in different places. |
| Issues of Share and Debentures | These company are not allow to issues share and debenture to the general public | These company can issues shares and debenture to the public |
| Issues of Prospectus | Private company need not to develop and issues their prospectus | They must issue the prospectus for issuing of shares, debentures and other securities. |
| Certificate of Business Commencement | Private company need not to get the certificate of business commencement to begin its activities. It can start its business activities just after they get their registration certificate. | Public company must get certificate of business commencement to start their business activity (transactions) |
| Words after their Name | Private company use Pvt. Ltd. (Or Private Limited) | The term Limited or Ltd. is written after its name to recognize it as a public company. |
| Transparency of Financial Transaction | These company are not bound to publish any financial document | These company are legally bound to publish their financial statement in National Level news paper and their website. |
| Statutory Meeting | The statutory meeting are not compulsory and do not need to send its report to the register office. Meeting held according to agreement between shareholders. | The statutory meeting must be taken place in public company within one year of receiving the certificate of commencement. The report of the meeting should be sent to the company registrar's office. |
| Number of board of director | The maximum number of member should not be more than 11 but minimum depend on the article of association. | The minimum number of public limited company is 3 and maximum number is not more than 11. |
