Question

Distinguish between Private limited company and Public limited company.

Answer 1

Difference between a public company and private company

Basic	Private Company	Public Company
Members	Minimum - 2 Maximum- 50	Minimum - 7 Maximum-Unlimited
Minimum number of directors:	Two	Three
Minimum paid up capital:	₹ 1 lakh	₹ 5 lakh
Transfer of shares:	Restriction on transfer	No restriction
Prospectus:	Need not issue Prospectus	Can issue prospectus
Starting of business:	After getting Certificates of incorporation	After getting certificate of commencement of business
Name:	End with "Private limited"	End with "Public limited"
Minimum subscription :	Need not have to obtain minimum subscription	Need minimum subscription
Index of members: Statutory meeting	Not compulsory Need not require statutory meeting	Compulsory meeting
Quorum:	Two	Five