Dear All,
What is the differences between a Public Ltd. Co. and Pvt. Ltd. Co., Pls. guide me.
Regard
Bishnu Deo Sharma.
BISHNU DEO SHARMA (SERVICE) (101 Points)
18 April 2009Dear All,
What is the differences between a Public Ltd. Co. and Pvt. Ltd. Co., Pls. guide me.
Regard
Bishnu Deo Sharma.
MOHIT MAHAJAN
(LCS, ACA)
(2050 Points)
Replied 18 April 2009
Here are some of the basic differences-
Private Ltd.
Pvt. Co.can be formed by at least two individuals having minimum paid-up capital of not less than Rupees 1 lakh.
Total membership of these companies cannot exceed 50.
The shares allotted to it’s members are also not freely transferable.
These companies are not allowed to raise money from the public through open invitation.
They are required to use “Private Limited” after their names.
Public Ltd.
A minimum of seven members are required to form a public limited company.
It must have minimum paid-up capital of Rs 5 lakhs.
There is no restriction on maximum number of members.
The shares allotted to the members are freely transferable.
These companies can raise funds from general public through open invitations by selling its shares or accepting fixed deposits.
These companies are required to write either ‘public limited’ or ‘limited’ after their names.
Besides above private ltd. co. enjoys many concessions in terms of legal compliances which are otherwise applicable on public co.
Gargi Ranade
(CS)
(619 Points)
Replied 20 April 2009
Hi ! Please find attatched file which states the exemptions enjoyed by Private Ltd.Co. under The Companies Act,1956
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 20 April 2009
Good Job Gargi.
Dear bishnu, You can also find the same in any good law book.
Ajay Mishra
(Company Secretary)
(74332 Points)
Replied 21 April 2009
Dear Bishnu
I think Mohit and Gargi reply will be sufficient to understand the difference between Public Limited Company and Private Limited Company .
Regards
vinay
(student)
(21 Points)
Replied 12 May 2010
hi all..
i cant seem to download this file.. can some one send that differences wala doc file to vinaymenon1985 @ gmail.com.. pls??
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