PUBLIC & PRIVATE COMPANY

THE DIFFRENT B/w PUBLIC  &  PRIVATE COMPANY 

PUBLIC COMPANY	PRIVATE COMPANY
A Private company has "Pvt.Ltd" at the end of its name.	A Public company has "Ltd" at the end of its name.
Minimum number of members
The minimum number of members needed to form a private company is at least 2 members.	The minimum number of members needed to form a Public Company is at least 7 members.
Maximum number of members
The Maximum number of members in a Private Company is restricted to 200.	The Public Company have no restriction on a maximum number of members.
Minimum Paid-up Capital
Private Company should have a minimum paid up capital of 1 lakh rupees.	Public Company should have a minimum paid up capital of 5 lakh rupees.
Commencement of Business
Commencement of business of a Private Company takes place immediately after getting the certificate of incorporation.	A Public Company can only Commence its business after receiving a certificate of incorporation and Certificate to commencement.
Number of Directors
A Private Company must have at least 2 directors to head and supervise the affairs of the company.	A Public Company must have at least 3 directors to manage and lead the affairs of the company.
Issue of Prospectus
A Private Company cannot issue a Prospectus. Private Company is not allowed for inviting the public for subscription of its shares.	Public Company can issue a Prospectus. Public Company is free to invite public for subscription of its shares.
Minimum Subscription
A Private Company can allot shares without waiting for the completion of minimum subscription limit.	A Public Company cannot be able to allot shares before the minimum subscription of shares is completed.
Transferability of shares
The Articles of Association of a Private Company lays restriction on transfer of the shares from one person to another person.	The Public Company is free to transfer the shares of its company from one person to another.
Quorum
A Private Company is obligated to have at least 2 members personally present for holding the company meeting.	A Public Company is obligated to have at least 5 members personally present to constitute the meeting.
Statutory meeting
A Private Company is not required to conduct a Statutory Meeting of the members or filing of Report to the Register of Companies.	A Public Company is required to conduct a statutory Meeting and file the Report to the Register of Companies.
Managerial remuneration
There are no restrictions on payments and remunerations offered to the directors or managers of a Private Company.	There are some restrictions on payments and remunerations offered to the directors or managers and the remuneration should not exceed 11% of the net profits.

                         

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