Differences between Public and Private Company

                                             Public Company

                                        Private Company

1. Minimum numbers of members or shareholders is three in case of public unlisted company and in case of public listed, it is seven.

1. Minimum numbers of members or share holders is two in case of private company and in case of SMC it is one.

 2.No limit is fixed for maximum members or shareholders.

2.For maximum no of members of shareholders , the limit is fixed as fifty.

3. If the company is public unlisted , its shares can be sold to general public but sale of share cannot be done through stock exchange.But in case of public listed , shares can be sold to general public in stock exchange.

4. Public limited companies have to present their data to general public.

5. A copy of final account must be submitted with the registrar.

6. Issuance of prospectus is necessary.

7. Audit of its account is compulsory.

8. It may be a member of stock exchange.

9. It cannot start its business after receiving certificate of incorporation.

10. Commencement certificate is necessary.

11. Public limited companies add the word “Ltd.” with their name.

12. It is obligatory for the public limited company to hold statutory meeting.

3. It cannot sell its shares to general public.

4. There is no such provision for private limited company.

5. A copy of final accounts is not necessary to be submitted with the registrar.

6. Issuance of prospectus is not required under the law in case of private company

7. Audit of its account is not compulsory.

8. It cannot be a member of stock exchange.

9. It may start it business just after receiving certificate of incorporation.

10. Commencement certificate is not necessary.

11. Private limited companies add the word “(Pvt) Ltd.” with their name.

12.  There is no such obligation for privet limited company