Public ltd &private ltd

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pvsrikanth (Querist)
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11 January 2012 DEAR SIR,
WHAT IS THE MAJOR DIFFERENCE BETWEEN LTD COMPANY AND PRIVATE LIMITED COMPANY AND WHAT ARE ADVANGES BETWEEN THOSE. WHAT IS LTD COMPANY.

Guest

Guest (Expert)

11 January 2012 Public company minimum capita is 5.00 Lacs and for private company it is 1.00 Lacs.

Public Company minimum 3 director and private company has minimum 2 director

Public company minimum shareholder 7 and for private company it is 2 shareholders.

There is no maximum limit on shareholders for public company while for private company it is 50.

Public company has more ease of operation rather than private company.

CS Pawan Kumar Baid

CS Pawan Kumar Baid (Expert)
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11 January 2012 I disagree with expert that public company has more ease of operation.

Private company has lots of exemptions and privilege from application of companies act.

Benefit of public company is that it can issue share/debentures etc.

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Guest

Guest (Expert)

11 January 2012 Public company has more ease of operation because it can go for expansion and diversification of business operations. It can also obtain loans from banks/FI's/NBFC with much less hassle than private companies.
Thanks

CS Pawan Kumar Baid

CS Pawan Kumar Baid (Expert)
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11 January 2012 I agree, but only to the extend that it can raise capital. But it does not mean that it has "ease" of operation.