|
Basis of differences |
Private company |
Public company |
|
A number of shareholders |
A private limited company limits the number of the member to 50. |
A public company requires at least 7 members but there is no upper limit. |
|
Prospectus |
It cannot issue a prospectus for inviting people to purchase their shares. |
It can issue the prospectus for inviting people to purchase their shares. |
|
Transfer of shares |
There is a restriction to transfer its share. |
There is no restriction to transfer its shares. |
|
Commencement of business |
It must only have a certificate of commencement. |
It must have a certificate of commencement and a certificate of incorporation as well. |
|
Publication |
It does not require to publish its annual statements. |
It requires to publish its annual statements. |
|
Statutory meeting |
It is not required to hold a statutory meeting. |
It is required to hold a statutory meeting. |
|
Statutory report |
It does not need to file a statutory report. |
It needs to file a statutory report. |
|
Use of word |
It must use the words ‘Private Limited’ (Pvt. Ltd.) in its name. |
It must use the words 'Limited' (Ltd.) in its name. |
