Difference Between Public Company and Private Company
DIFFERENCE BETWEEN PRIVATE COMPANY AND PUBLIC COMPANY
PRESENTED BY: DEBASIS BEHERA REGD NO:10HM08
What is company?
An association of persons who contribute money or money’s worth towards a businessLord Lindley. Voluntary association formed and organized to carry on a business in the legal name of the association. Company formed and registered under company act.
What is private company?
Business firm in the private (non-public) sector of an economy, controlled and operated by private individuals (and not by civil servants or government employees). Used also as an alternative term for private limited company.
What is public company?
A public company is a company that has permission to offer its registered securities (stock, bonds etc.) for sale to the general public, typically through a stock exchange or occasionally a company whose stock is traded over the counter (OTC) via market makers who use non-exchange quotation services. Used also as an alternative term for public limited company.
Difference between public and private company
PRIVATE LTD.
No. of members can be 2 to 50. Minimum paid up capital of Rs one lakh. Minimum number of directors present should be 2. Can accept deposit only from members, directors or their relatives.
PUBLIC LTD.
No. of members can be 7 to unlimited. Minimum Paid up capital Rs five lakhs. Minimum number of directors present should be 3. Can accept public deposits.
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DIFFERENCE BETWEEN PRIVATE AND PUBLIC COMPANY
PRIVATE LTD
Should contain words “Private Limited”at the end of its name. Cannot invite public to subscribe for shares or debentures. Statement in lieu of prospectus not required even for first issue.
PUBLIC LTD
Should contain word “Limited” at the end of its name. Can invite public to subscribe for shares or debentures. Statement in lieu of prospectus OR prospectus required.
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DIFFERENCE BETWEEN PRIVATE AND PUBLIC COMPANY
PRIVATE LTD
PRESENTED BY: DEBASIS BEHERA REGD NO:10HM08
What is company?
An association of persons who contribute money or money’s worth towards a businessLord Lindley. Voluntary association formed and organized to carry on a business in the legal name of the association. Company formed and registered under company act.
What is private company?
Business firm in the private (non-public) sector of an economy, controlled and operated by private individuals (and not by civil servants or government employees). Used also as an alternative term for private limited company.
What is public company?
A public company is a company that has permission to offer its registered securities (stock, bonds etc.) for sale to the general public, typically through a stock exchange or occasionally a company whose stock is traded over the counter (OTC) via market makers who use non-exchange quotation services. Used also as an alternative term for public limited company.
Difference between public and private company
PRIVATE LTD.
No. of members can be 2 to 50. Minimum paid up capital of Rs one lakh. Minimum number of directors present should be 2. Can accept deposit only from members, directors or their relatives.
PUBLIC LTD.
No. of members can be 7 to unlimited. Minimum Paid up capital Rs five lakhs. Minimum number of directors present should be 3. Can accept public deposits.
5
DIFFERENCE BETWEEN PRIVATE AND PUBLIC COMPANY
PRIVATE LTD
Should contain words “Private Limited”at the end of its name. Cannot invite public to subscribe for shares or debentures. Statement in lieu of prospectus not required even for first issue.
PUBLIC LTD
Should contain word “Limited” at the end of its name. Can invite public to subscribe for shares or debentures. Statement in lieu of prospectus OR prospectus required.
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DIFFERENCE BETWEEN PRIVATE AND PUBLIC COMPANY
PRIVATE LTD