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Difference between Public Company and Private Company with their Comparison

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In this article we will discuss about Private Company and Public Company and also discuss about difference between Public company and Private Company with their comparison chart.


Concept of Public and Private Company

Public Company

Difference between Public Company and Private Company

Public company refers to that company which is owned and traded publicly.  In public company minimum requirement of members are seven and maximum members required are unlimited. The paid up capital of public companies are 5 Lakh and the name of public company is ended with “limited”.

 

Public company can form its business after getting certificate of commencement of business and there is no restriction on transfer of shares.

Private Company

Private companies are those companies which is owned and traded privately. The minimum members required are two and maximum numbers are members are fifty. The paid up capital of private company is 2 lakh. But in case of private company the word limited used at the end of the name of the company.

Difference between Public Company and Private Company

Private company commenced its business after incorporation of business and there is restriction on company to transfer its shares from one to another.

Difference between Public Company and Private Company

Difference between Public Company and Private Company

 

Basis for Comparison

 

Public company

 

Private Company

 

Meaning

 

Public company is that company which is owned and traded by public.

 

Private company is that which is owned and traded privately.

 

No of maximum members

 

Unlimited members

 

50

 

No of minimum members

 

7

 

2

 

Paid up Capital

 

5 Lakh

 

     1 Lakh

 

Transfer of shares

 

Not Restricted

 

   Restricted

 

Members for AGM

 

Members to be present in AGM are 5

 

Members to be present in AGM are 2

 

Issue of prospectus

 

 Free to issue

 

Prohibited

 

So we have discussed the Difference between Public company and Private Company with its comparison chart. If you have any query please let us know in the comments section below.

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