Public Ltd and Pvt Ltd Company

Different Between Public Ltd and Pvt Ltd Company


Private limited company

A joint-stock company is known as a private limited company, established under the Indian Companies Act, 2013 or any other previous Act.

It is a voluntary association of persons with a minimum paid-up capital of Rs. 1,00,000. At least 2 people are required to open a private limited company. The utmost number of current employees in a private limited company can be 200.

This type of company is not allowed to sell its shares to the public or the general public. If these all indications are found in a company, then that company has to use the word ‘Private Limited’ at the end of its name.

Public limited company

A PLC or a public Ltd. The company is a joint-stock company that has a company registered under the Indian Companies Act, 2013, or any other previous Act. It is a consortium of voluntarily established individuals with a minimum paid-up capital of Rs. 5 lakhs. For the opening, this type of company, a minimum of 7 members is required but there is no upper limit for maximum members.

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Difference between a Pvt. Ltd. company and a Public Ltd. Company:

  1. To start a public limited company, there should be at least seven members. In contrast, a private company can be started with at least two members.
  2. There is no limit on the maximum number of members in a public limited company; In contrast, a private company can have a maximum of 200 members.
  3. A public limited company is called a company that is listed on a recognized stock exchange and is publicly traded whereas a private limited company is a company that is not listed on the stock exchange and is owned by The right remains with its owners.
  4. The size of a private limited company is smaller than that of a public company and the financial sources are also less.
  5. A public limited company should have at least three directors, while it is mandatory to have at least 2 directors in a private limited company.
  6. In the case of a public company, it is mandatory to call a general meeting of the members, whereas in the case of a private company there is no such compulsion.
  7. To fulfill the quorum of the Annual General Meeting (AGM) in the case of a public limited company, at least five members must be present in person at the meeting. In the case of a private limited company, this number should be 2.
  8. a public limited company must issue a prospectus or state place of a prospectus, whereas such a provision is not the case with a private company.
  9. Shareholders of a public limited company can freely transfer/sell their shares whereas private limited companies are not allowed to do so.
  10. To start a business, a public company needs a certificate of starting a business after getting its company registration in India establishment; On the contrary, a private company can start its business soon after obtaining the establishment certificate.
  11. The benefit from a public limited company is received by the government and the shareholders of the company, while the private company gets the benefit from the private limited company.

Based on the above differences, it can be said that there is a difference between these two types of companies. The government owns the public limited company and the private limited company has the right of any private person.

What is the similarity between the companies?

Both the companies need a Company registration in India with ROC. And both the companies need to file Annual Compliances on their yearly basis every year. These are the similarity of the companies.

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