Difference between private company and public company



Difference between private company and public company

 

Bases of difference Private company Public company
Number of members It needs at least 1 member for its formation. The maximum number can be 50. It needs at least 7 members for its formation. The maximum number is not limited.
Invitation for capital It cannot invite the public to buy its shares It is free to invite the public to buy its shares
Commencement of business It can commence the business immediately after the incorporation It can commence the business after receiving the certificate of commencement of business.
Issue of prospectus It does not need to issue prospectus It must issue prospectus
Statutory meeting It does not need to hold statutory meeting and file statutory report. It must hold statutory meeting and file statutory report
Transfer of shares The transferability of share is not allowed and hence its ownership cannot be transferred The transferability of share is allowed and hence its ownership can be transferred
Use of word It must use the word Pvt. Ltd. at the end of its name. It must use the word Ltd. at the end of its name
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