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Difference [Thread 130347] - CiteHR

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Sarikajaanu
Hi All, I have a question to ask, what is the difference b/w PVT LTD company and LTD company( is it also called as public LTD company). Please someone tell me. Regards, Jaanu
From India, Madras
mohitjims
Private company:

A private company is one which has minimum paid up capital of one lac rupees and which by its articles put:
a)Restrictions on membership: minimum 2 and maximum 50 members.
b)Restrictions on transferability of shares: the members do not have a right to transfer their shares freely. There are restrictions on their rights.
Prohibition of issue of prospectus: the company must prohibit their invitation to public to subscribe for its shares and debentures
Public company:
A public company is one , which is not a private company. Thus, if the articles of a company do not provide the aforesaid three restrictions, it shall be a public company. A public company requires minimum seven members and there is no limit on maximum members. The shares and debentures of public company may be quoted on a stock exchange and are freely transferable.


Bibhu Prasad Das
1

Hi Jaanu
Very simply speaking as per Company Law, 1956 :
A Private Limited Company is one whose equity is held closely(Privately) among stake holders being not less thsn 2 and not more than 50.
The Shares of such a com[pany are not traded publicly.
The Provisions also specify about the constitution and appointment of the Board of Directors.
A Public Limited Company is one whose equity is held publicly.
Thus a Public Limited Company can be promoted by a minimum number of promoters
eligible for the purpose(not less than 7).
The shares of such a company are registered in a stock exchange and can be traded .
Obviously, the issue is governed by the jurisdiction of regulatory authorities functioning under the RBI guidelines.
Hope for the timebeing so much is good enough.
Bye
Bibhu Prasad Das:-P

From India, Bhubaneswar
verma_subodh
In one sentance: if company’s shars distributed in public then this is Public Ltd company and if not then this is Pvt Company.
From India, Pune
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