PRIVATE &

PUBLIC COMPANY

Submitted to: Submitted By:

Ms. Khushboo Neha Yadav
1602070042
PRIVATE COMPANY
 A private company is a firm held under private
ownership. Private companies may issue stock
and have shareholders, but their shares do not
trade on public exchanges and are not issued
through an initial public offering (IPO). As a
result, private firms do not need to meet the
Securities and Exchange Commission's (SEC)
strict filing requirements for public companies. In
general, the shares of these businesses are less
liquid, and their valuations are more difficult to
determine.
FEATURES
Features of a Private Limited Company are as
follows:
 NON TRANSFERABILITY OF SHARES
 CANNOT ACCEPT DEPOSITS
 NUMBER OF DIRECTORS
 LIMITED LIABILITY
 SEPARATE LEGAL ENTITY
PUBLIC COMPANY
 A public company is a company that has
issued securities through an initial public
offering (IPO) and is traded on at least one
stock exchange or in over-the-counter
markets. Although a small percentage of
shares may be initially floated to the public,
becoming a public company allows the
market to determine the value of the entire
company through daily trading.
FEATURES
The features of a public limited company are given below:
 Formation
 A number of members
 Prospectus
 Share capital
 Transferability of shares: .
 Statutory duties
 Separate logo
 Limited liability
 Board of Directors
 Voluntary association
MAIN DIFFERENCE
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).
 BASIS FOR PUBLIC PRIVATE
COMPARISON COMPANY COMPANY
Meaning A public company A private
is a company company is a
which is owned company which
and traded is owned and
publicly traded privately.
Minimum 7 2
members
Maximum Unlimited 200
members
Minimum 3 2
Directors
Suffix Limited Private Limited
Start of business After receiving After receiving
certificate of certificate of
incorporation and incorporation.
certificate of
commencement
of business.
BASIS PUBLIC COMPANY PRIVATE
COMPANY

Public subscription Allowed Not allowed

Quorum at AGM 5 members must 2 members must
present in person. present in person.
Transfer of shares Free Restricted
Issue of prospectus Obligatory Not required
/ Statement in lieu
of prospectus

Statutory Meeting Compulsory Optional

THANK
YOU