||Pvt. Ltd Company
||Public Ltd Company
||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.
||A Public Company must have a minimum paid-up capital of Rs. 5,00,000.
||Minimum number of members
||Minimum number of members required to form a private company is 2.
||A Public Company requires atheist 7 members.
||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.
||Transerferability of shares
||There is complete restriction on the transferability of the shares of a Private Company through its Articles of Association.
||There is no restriction on the transferability of the shares of a Public company.
||Issue of Prospectus
||A Private Company is prohibited from inviting the public for subscription of its shares, i.e. a Private Company
cannot issue Prospectus.
|A Public Company is free to invite public for subscription i.e., a Public Company can issue a Prospectus.
||Number of Directors
||A Private Company may have 2 directors to manage the affairs of the company.
||A Public Company must have at least 3 directors.
||Consent of the directors
||There is no need to give the consent by the directors of a Private Company.
||The Directors of a Public Company must have file with the Registrar consent to act as Director of the company.
||The Directors of a Private Company need not to sign an undertaking to acquire the qualification shares.
||The Directors of a Public Company are required to sign an undertaking to acquire the qualification shares of the public Company.
||Commencement of Business
||A Private Company can commence its business immediately after its incorporation.
||A Public Company cannot start its business until a Certificate to commencement of business is issued to it.
||A Private Company cannot issue Share Warrants against its fully paid shares.
||A Public Company can issue Share Warrants against its fully paid up shares.
||Further issue of shares
||A Private Company need not offer the further issue of shares to its existing shareholders.
||A Public Company has to offer the further issue of shares to its existing shareholders as right shares. Further issue of shares can only be offer to the general public with the approval of the existing shareholders in the general meeting of the shareholders only.
||A Private Company has no obligation to call the Statutory Meeting of the member.
||Public Company must call its statutory Meeting and file Statutory Report with the Register of Companies.
||The quorum in the case of a Private Company is TWO members present personally.
||In the case of a Public Company FIVE members must be present personally to constitute quorum. However, the Articles of Association may provide and number of members more than the required under the Act.
||Total managerial remuneration in the case of a Public Company cannot exceed 11% of the net profits, and in case of inadequate profits a maximum of Rs. 87,500 can be paid.
||These restrictions do not apply on a Private Company.
||A Private Company enjoys some special privileges.
||Special privileges are not available to a Public Company.