PRIVATE LIMITED COMPANY Vs. PUBLIC LIMITED COMPANY

Though both private limited and public limited are registered as a company under the Companies Act, 2013, there are some subtle differences which distinguish one from another. You can notice the difference on the basis of followings points:

MINIMUM NUMBERS OF MEMBERS REQUIRED:
In a private limited company, the minimum number of members can 2 WHEREAS, in a public limited company, the minimum number of members can be 3.

MINIMUM NUMBERS OF DIRECTORS:
Private Limited Company: 2 directors
Public Limited Company: 3 directors

TRANSFERABILITY OF SHARES:
Private Limited Company can restrict the transferability of shares but shares in a public limited company are freely transferrable.

COMPLIANCE BURDEN:
A private company is required to follow lesser compliances than a public limited company.

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