Difference between private company and public company



Difference between private company and public company

 

Bases of differencePrivate companyPublic company
Number of membersIt 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 capitalIt cannot invite the public to buy its sharesIt is free to invite the public to buy its shares
Commencement of businessIt can commence the business immediately after the incorporationIt can commence the business after receiving the certificate of commencement of business.
Issue of prospectusIt does not need to issue prospectusIt must issue prospectus
Statutory meetingIt does not need to hold statutory meeting and file statutory report.It must hold statutory meeting and file statutory report
Transfer of sharesThe transferability of share is not allowed and hence its ownership cannot be transferredThe transferability of share is allowed and hence its ownership can be transferred
Use of wordIt 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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