No. | Private Co. | Public Co. |
1. | Minimum no of members is 2 | Minimum no of members is 7 |
2. | Maximum no members is 50 | No maximum limit |
3. | Minimum paid up capital is Rs 1 lakh | Minimum paid up capital is 5 lakh |
4. | Name must end with the word ‘Pvt Ltd’ | Name must end with the word ‘Ltd’ |
5. | Can commence business immediately after incorporation | It shall have to wait until it receive the certificate for commencement of business. |
6. | It cannot invite public to subscribe its shares and debentures | It can invite public to subscribe its shares and debentures |
7. | Minimum subscription is not required for allotment of shares. 9 | Minimum subscription is required for allotment of shares. |
8. | Need not hold statutory meeting of the members. | It has to hold a statutory meeting and file a stat: report. |
9. | Quorum required for a meeting is 2. | Quorum required for a meeting is 5 |
10. | There is restriction of transfer of shares | Shares can be freely transferred. |
11. | Not required to issue prospectus. | Must issue prospectus. |
13. | Two directors | Three directors |
