The key differences between a Private Limited Company and a Public Limited company are tabled below.
|Particulars||Public Limited Company||Private Limited Company|
|Minimum Number of share holders||A Public limited company requires minimum 7 share- holders.||A Private Limited Company requires minimum 2 share- holders.|
|Maximum Number of Share Holders||There is no limit for maximum number of share- holders in a Public Limited Company.||Maximum numbers of 200 share- holders are allowed in a Private Limited Company.|
|Minimum number of directors for Managing the affairs of the company.||In case of Public limited company, minimum 3 directors are required for managing the affairs of the company||In case of Private limited company, minimum 2 directors are required for managing the affairs of the company|
|Requirement of filing consent letter with ROC||The Directors of Public limited company must file consent letter with ROC to act as Director of the company.||No such requirement is needed for the Directors of private limited company.|
|Invitation to public to subscribe for share capital of the company||The promoters of the Public limited company can issue prospectus and invite public subscription to raise capital from the general public.||The promoters of private limited company are prohibited from inviting the public for the subscription of shares and debentures.|
|Transferability of company’s shares||The shares of a public limited company are freely transferable.||There are certain restrictions on transfer of shares of private limited companies.|
|Annual General Body Meeting||The statutory general meeting is compulsory for public limited company||The general meeting is not compulsory for private limited company|
|Certificate of commencement of business.||The requirement of obtaining commencement of business certificate after incorporation of company has been removed in the Companies amendment act.2015.||Under companies’ act 2013; private companies were also required to obtain commencement of business certificate after incorporation of the company. This clause has been removed in the Companies amendment act.2015.|
|Common Seal||Earlier, under companies’ act 2013 a common seal was required for any attestations on behalf of the company. The above requirement of common seal is made optional in the Companies Amendment Act 2015.||Earlier, under companies’ act 2013 a common seal was required for any attestations on behalf of the company. The above requirement of common seal is made optional in the Companies Amendment Act 2015.|
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