Distinguish Between Public And Private Limited Company

DISTINGUISH BETWEEN PUBLIC AND PRIVATE LIMITED COMPANY

The main points of distinction are as follow:

PRIVATE COMPANY

01)It requires registration and incorporation but has not to file

(a) List of Directors

(b) consent of directors with other documents to be filed as in public company.

2) It does not require any certificate to commence business and can start business soon after incorporation.

3) Can not issue a prospectus.

4) Must ordinarily use “Private Limited” as the last word in the name.

5) It is not required to hold the statutory meeting.

6) Annual accounts need not be circulated to members and need not be filed with the Registrar.

7) Accounts must be audited but not necessarily by an R.A. or C.A.

8) total membership must not exceed 50, minimum to 2.

9) Transfer of shares by a shareholder is restricted.

PUBLIC COMPANY
1) It requires registration and in- corporation and has to file (a) List of Director and (b) consent of Directors with other documents necessarily to be filed for registration and incorporation.

2) Can start business only after obtaining the certificate to commence business.

3) Must issue a prospectus or file a statement in lieu of prospectus.

4) Must use “Limited” as the last word in the name.

5) it must hold the statutory meeting and circulate the statutory report.

6) Accounts must be circulated and filed with the Registrar.

7) Accounts must be audited by an R.A. or C.A.

8) No maximum limit on membership. There can be as many members as shares. Minimum is 7.

9) Transfer of shares by a completely free and unrestricted.

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