Question

Differtence between private and public company in india

Answer 1

The difference between public and private company can be drawn clearly on the following grounds: The public company refers to a company that is listed on a recognised stock exchange and traded publicly. A Private Ltd. the company is one that is not listed on a stock exchange and is held privately by the members

Answer 2

Following are the main points of difference between a public company and a private company:

1. Minimum Paid-up Capital- A company to be incorporated as a Private Company must have a minimum paid-up capital of Rs. 1, 00,000, whereas a Public Company must have a minimum paid-up capital of Rs. 5, 00,000.

2. Minimum Number of Members- Minimum number of members required to form a private company is 2, whereas a Public Company requires at least 7 members.

3. Maximum Number of Members- Maximum number of members in a Private Company is restricted to 50, there is no restriction of maximum number of members in a Public Company.

4. Transferability of Shares- There is complete restriction on the trans­ferability of the shares of a Private Company through its Articles of Association, whereas there is no restriction on the transferability of the shares of a Public Company.