Question

Easy distinguish between government company and public company

Answer 1

A private company is a closely held one and requires at least two or more persons, for its formation. On the other hand, a public company is owned and traded publicly. It requires 7 or more persons for its set up. There are vast differences between Pvt Ltd. and Public Ltd Company.In the business glossary, it is no wonder that the term company is used commonly. It is that form of business organization, which enjoys certain advantages over other forms such as sole proprietorship or partnership. A company is an artificial person, that come into existence through a legal process, i.e. incorporation.

So, it features, separate legal entity, perpetual succession, limited liability, common seal, can sue and be sued in its own name. Basically, there are two types of companies, i.e. Private company (Pvt Ltd. Company) and Public Company (Public Ltd. Company).