Following are the differences between a public company and a private company:
| BASIS OF DIFFERENCE |
PUBLIC COMPANY |
PRIVATE COMPANY |
| NUMBER OF MEMBERS |
Has a minimum of 7 members and no limit on maximum members |
Has a minimum of 2 and a maximum of 200 members, excluding the present and past employees |
| RESTRICTION ON TRANSFER OF SECURITIES |
Has no restriction on transfer of securities |
Restricts the right of members to transfer its shares |
| INVITING PUBLIC |
Is not prohibited from inviting the public to subscribe to its securities |
Does not invite public to subscribe to its securities |
| Minimum No. of Directors |
Two |
Three |
| Index of Members |
Compulsory |
Not Compulsory |
