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  • Difference Between Single Member Company

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    Syed Kamran Bukhari
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    This document compares and contrasts single member companies, private limited companies, and public limited companies. Some key differences include: - Single member companies have a single owner, private limited companies have 2-50 members, and public limited companies have a minimum of 7 members. - Capital for single member companies comes from the owner, private limited companies from members not the public, and public limited companies from directors and the general public. - Single member companies have one director who is the owner, private limited companies have a minimum of 2 directors, and public limited companies have a minimum of 7 directors. - Private and public limited companies must include "Limited" or "Private Limited" in their names, while

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    This document compares and contrasts single member companies, private limited companies, and public limited companies. Some key differences include: - Single member companies have a single owner, private limited companies have 2-50 members, and public limited companies have a minimum of 7 members. - Capital for single member companies comes from the owner, private limited companies from members not the public, and public limited companies from directors and the general public. - Single member companies have one director who is the owner, private limited companies have a minimum of 2 directors, and public limited companies have a minimum of 7 directors. - Private and public limited companies must include "Limited" or "Private Limited" in their names, while

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    2K views2 pages

    Difference Between Single Member Company

    Uploaded by

    Syed Kamran Bukhari
    This document compares and contrasts single member companies, private limited companies, and public limited companies. Some key differences include: - Single member companies have a single owner, private limited companies have 2-50 members, and public limited companies have a minimum of 7 members. - Capital for single member companies comes from the owner, private limited companies from members not the public, and public limited companies from directors and the general public. - Single member companies have one director who is the owner, private limited companies have a minimum of 2 directors, and public limited companies have a minimum of 7 directors. - Private and public limited companies must include "Limited" or "Private Limited" in their names, while

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 2

    Difference between Single Member Company, Private Limited Company and Public limited company

    Points Single Member Company Private Limited Public Limited Company


    Company
    1.Number of members There is single owner or Minimum number of According to companies
    this business. members is two and ordinance 1984 minimum
    maximum number is members are seven and no
    fifty. limit of maximum members.
    2.Capital Capital is brought by Capital is collected by Capital is collected from
    owner. members of this directors and from general
    company not from public.
    general public.
    3.Number of Directors There is only one person There are minimum There are minimum seven
    who is the owner and two directors. directors.
    director of company.
    4.Tiltle It is necessary to use the There is also necessary There is no need to use such as
    word Limited Company. to use the word Private words in the name of company.
    Limited Company.
    5.Audit of account The SMC is required to Private limited The audit of this type of
    appoint auditor under company having less compulsory by the charted
    the role of 1984 then 3 million rupees accountant.
    paid up capital is not
    bond to audit its
    account.
    6.Transfer of shares SMC can transfer its The private limited This company can sell its shares
    shares to the legal company cannot offer in the open market and to the
    representatives. the shares to the general public.
    general public.
    7.Allotment or shares When new share holder This company can issue Public limited company cannot
    come in this company it shares from the first allot shares until it has
    changes in private limited day of its working. collected the minimum amount
    company. of capital as described by the
    registration.
    8.Issuance of prospectus It had no need to issue It had also no need to It has to issue the prospectus
    the prospectus. issue the prospectus for the sale of shares.
    because its shares are
    not offered to general
    public.
    9.Certificate of It can start its business The private limited This type of company cant start
    commencement without this certificate. company doest need its business until it has received
    to get certificate. this certificate from registrar.
    10.Size of business The size of this business It is suitable for As the public limited company
    is small medimum size of can collect huge amount of
    business. capital so it is suitable for a
    large business concern.
    11.Government facilities There are many In case of this business As its plays main role in
    government facilities. government does not economy of country that is why
    provide facilities as like government provide many
    public limited facilities.
    company.
    12.Formation Formation of this Formation of this This business takes very long
    business is not so long. business is not also time to format.
    long.

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