please tell me what is difference between pvt ltd company and ltd company?
From India, Sholapur
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1From India, Sholapur
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Dear Amith, In Private Limited Company the company shares are owned by Directors and Promoters. In Limited Company or Public Limited Company the company shares are owned by the public.
From India, Mumbai
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From India, Mumbai
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Certainly! Here is the revised version of the user's input with corrections:
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What is the difference between a Pvt Ltd company and an Ltd company?
Well, there are lots of differences between a Pvt Ltd company and an Ltd company:
1. Pvt. Ltd is wholly private and follows the rules and regulations of the government but implements its own rules, whereas an Ltd company simply follows the government rules and implements them as per government guidelines.
2. In a Private company, the CEO/chairman is the owner of the company, whereas in an Ltd company, there is a government-appointed person.
3. In an Ltd company, you receive bonuses, gratuity, and other benefits, whereas in a Pvt Ltd company, there are some restrictions on these benefits.
4. In an Ltd company, you have a specified number of leave days per year, whereas in a Pvt Ltd company, it follows a "no work, no pay" policy.
There are many benefits that are restricted in a Pvt Ltd company.
Kunal
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I have corrected the spelling, grammar, and punctuation errors and ensured proper paragraph formatting. Let me know if you need any further assistance.
From United Arab Emirates, Dubai
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What is the difference between a Pvt Ltd company and an Ltd company?
Well, there are lots of differences between a Pvt Ltd company and an Ltd company:
1. Pvt. Ltd is wholly private and follows the rules and regulations of the government but implements its own rules, whereas an Ltd company simply follows the government rules and implements them as per government guidelines.
2. In a Private company, the CEO/chairman is the owner of the company, whereas in an Ltd company, there is a government-appointed person.
3. In an Ltd company, you receive bonuses, gratuity, and other benefits, whereas in a Pvt Ltd company, there are some restrictions on these benefits.
4. In an Ltd company, you have a specified number of leave days per year, whereas in a Pvt Ltd company, it follows a "no work, no pay" policy.
There are many benefits that are restricted in a Pvt Ltd company.
Kunal
---
I have corrected the spelling, grammar, and punctuation errors and ensured proper paragraph formatting. Let me know if you need any further assistance.
From United Arab Emirates, Dubai
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In a private limited company, the number of shareholders is between 7 to 50, whereas in a public limited company, the number should be a minimum of 7, but there is no limit for the maximum. Both private limited and public limited companies need to establish their own working guidelines/rules in the form of a memorandum and articles of association, which need to be registered with the registrar of companies. The registrar of companies has an office in the capital of each state where the company intends to operate.
From India, Jaipur
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From India, Jaipur
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Hi Amitcholle,
In a private company, the shares are owned by the company's directors and members only. However, in the case of a public limited company, the shares can be owned by anyone.
In the case of any private company, its liabilities are shared by all the shareholders. For example, if you and I are the individuals who have shares, and the company has grown well resulting in a profit, this profit will be distributed as a dividend based on the par value of the share. Now, let's consider a scenario where the company is running at a loss and needs to settle all its assets. In this case, the total investment or the entire liabilities will need to be covered by us.
For a public limited company, the profit will be divided among shareholders. However, in the event of a loss, there will be no trouble for the investors as the company is limited to its liabilities.
Thank you,
M. Raj Amruth
From India, Bangalore
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In a private company, the shares are owned by the company's directors and members only. However, in the case of a public limited company, the shares can be owned by anyone.
In the case of any private company, its liabilities are shared by all the shareholders. For example, if you and I are the individuals who have shares, and the company has grown well resulting in a profit, this profit will be distributed as a dividend based on the par value of the share. Now, let's consider a scenario where the company is running at a loss and needs to settle all its assets. In this case, the total investment or the entire liabilities will need to be covered by us.
For a public limited company, the profit will be divided among shareholders. However, in the event of a loss, there will be no trouble for the investors as the company is limited to its liabilities.
Thank you,
M. Raj Amruth
From India, Bangalore
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Hi Amitcholle,
In a private company, the shares are owned by the company's directors and members only. However, in the case of a public limited company, the shares can be owned by anyone.
In the case of any private company, its liabilities are shared by all the shareholders. For example, if you and I are the shareholders, and the company has grown well resulting in a profit, this profit will be distributed as a dividend based on the par value of the shares. Conversely, if the company is running at a loss and needs to pay off its debts, the total investment or liabilities will need to be covered by the shareholders.
In the scenario of a public limited company, profits are divided among the shareholders. In the case of a loss, there is no direct impact on the investors, as the company's liabilities are limited.
Thank you,
M. Raj Amruth
From India, Bangalore
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In a private company, the shares are owned by the company's directors and members only. However, in the case of a public limited company, the shares can be owned by anyone.
In the case of any private company, its liabilities are shared by all the shareholders. For example, if you and I are the shareholders, and the company has grown well resulting in a profit, this profit will be distributed as a dividend based on the par value of the shares. Conversely, if the company is running at a loss and needs to pay off its debts, the total investment or liabilities will need to be covered by the shareholders.
In the scenario of a public limited company, profits are divided among the shareholders. In the case of a loss, there is no direct impact on the investors, as the company's liabilities are limited.
Thank you,
M. Raj Amruth
From India, Bangalore
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Public limited companies shall have at least three directors. A private company, which is a subsidiary of a public company, is also considered a public company. A public limited company must obtain a Certificate of Commencement of Business from the Registrar of Companies before it can start operating after incorporation.
In a public limited company, a prospectus or a statement in lieu thereof must be filed with the Registrar of Companies before the allotment of shares. Additionally, shares of a public limited company are easily transferable, and since they can be quoted on a recognized stock exchange, their liquidity is enhanced.
Furthermore, a public limited company can have any number of members, and it is relatively easy for it to raise capital through public subscriptions.
From India, Madras
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In a public limited company, a prospectus or a statement in lieu thereof must be filed with the Registrar of Companies before the allotment of shares. Additionally, shares of a public limited company are easily transferable, and since they can be quoted on a recognized stock exchange, their liquidity is enhanced.
Furthermore, a public limited company can have any number of members, and it is relatively easy for it to raise capital through public subscriptions.
From India, Madras
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Dear Amit Cholle,
The Companies Act, 1956 Bare Act defines a "private company" as a company which has a minimum paid-up capital of one lakh rupees or such higher paid-up capital as may be prescribed, and by its articles, (a) restricts the right to transfer its shares, if any; (b) limits the number of its members to fifty; and (c) prohibits any invitation to the public to subscribe for any shares in, or debentures of, the company; (d) prohibits any invitation or acceptance of deposits from persons other than its members, directors, or their relatives.
The Act also defines a "public company" as a company which (a) is not a private company; (b) has a minimum paid-up capital of five lakh rupees or such higher paid-up capital as may be prescribed; (c) is a private company which is a subsidiary of a company that is not a private company.
Thanks & Regards,
R. Chandrasekar
Accountant
Mobile: +91-9344564849
E-mail: chandrasekar@visiontss.com
Skype: visionsekar
From India, Madras
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The Companies Act, 1956 Bare Act defines a "private company" as a company which has a minimum paid-up capital of one lakh rupees or such higher paid-up capital as may be prescribed, and by its articles, (a) restricts the right to transfer its shares, if any; (b) limits the number of its members to fifty; and (c) prohibits any invitation to the public to subscribe for any shares in, or debentures of, the company; (d) prohibits any invitation or acceptance of deposits from persons other than its members, directors, or their relatives.
The Act also defines a "public company" as a company which (a) is not a private company; (b) has a minimum paid-up capital of five lakh rupees or such higher paid-up capital as may be prescribed; (c) is a private company which is a subsidiary of a company that is not a private company.
Thanks & Regards,
R. Chandrasekar
Accountant
Mobile: +91-9344564849
E-mail: chandrasekar@visiontss.com
Skype: visionsekar
From India, Madras
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Please note, CEOs of public limited companies are appointed by the government only if the government holds more than 51% shareholding in the company. If the shareholding is shared between promoters and the public, then the choice of CEO is made by shareholders only, as is the case in companies of various prominent industrial giants. I suppose I have clarified the position. With good wishes.
From India, Jaipur
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From India, Jaipur
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As far as my knowledge:
Private companies are owned by a limited number of promoters or shareholders as per the provisions of the Companies Act. In the case of public limited companies, there can be any number of shareholders, but the minimum limit is 7. The general public can also purchase shares as issued by the company. If both are limited companies, the liability of the shareholder will be limited to his holdings in the company.
For more details, please refer to the Companies Act.
TM
From India, Calicut
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Private companies are owned by a limited number of promoters or shareholders as per the provisions of the Companies Act. In the case of public limited companies, there can be any number of shareholders, but the minimum limit is 7. The general public can also purchase shares as issued by the company. If both are limited companies, the liability of the shareholder will be limited to his holdings in the company.
For more details, please refer to the Companies Act.
TM
From India, Calicut
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Hi,
Please read the above comment. I would like to highlight one more point here: the main difference between a private limited (Pvt Ltd.) and a public limited (Public Ltd.) company is that the shares of a private limited company are owned by family members or some stipulated members only, while the shares of a public limited company are open to all in the share market.
Regards,
Mahadev K
From India, Pune
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Please read the above comment. I would like to highlight one more point here: the main difference between a private limited (Pvt Ltd.) and a public limited (Public Ltd.) company is that the shares of a private limited company are owned by family members or some stipulated members only, while the shares of a public limited company are open to all in the share market.
Regards,
Mahadev K
From India, Pune
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Hi all,
The basic difference between a private limited and public limited company is that there are restrictions on the transfer of shares of a private company, whereas shares of public limited companies are freely transferable. Second, the capital of a private limited company has a minimum requirement of one lakh, while in the case of a public limited company, the minimum capital is five lakh. Third, a private limited company cannot issue an IPO (Initial Public Offering). Fourth, in terms of statutory compliance, private limited companies have to follow fewer compliance requirements than public limited companies.
From India, Pune
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The basic difference between a private limited and public limited company is that there are restrictions on the transfer of shares of a private company, whereas shares of public limited companies are freely transferable. Second, the capital of a private limited company has a minimum requirement of one lakh, while in the case of a public limited company, the minimum capital is five lakh. Third, a private limited company cannot issue an IPO (Initial Public Offering). Fourth, in terms of statutory compliance, private limited companies have to follow fewer compliance requirements than public limited companies.
From India, Pune
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Dear,
There are a lot of differences between Pvt and Ltd as per the Companies Act of 1956. A few of them are given below:
- Difference
- Pvt Share Capital (minimum): 1 lakh for Ltd, 5 lakhs
- Shareholder (min-max): 2-50 for Ltd, 7-unlimited
- Governed by: Articles for Ltd, Companies Act
There are several sections that are not applicable for a Pvt company but are applicable to Ltd.
For more information, you can email me at rajeev@antiquelimited.com.
Regards,
Rajeev Chaturvedi
From India, Mumbai
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There are a lot of differences between Pvt and Ltd as per the Companies Act of 1956. A few of them are given below:
- Difference
- Pvt Share Capital (minimum): 1 lakh for Ltd, 5 lakhs
- Shareholder (min-max): 2-50 for Ltd, 7-unlimited
- Governed by: Articles for Ltd, Companies Act
There are several sections that are not applicable for a Pvt company but are applicable to Ltd.
For more information, you can email me at rajeev@antiquelimited.com.
Regards,
Rajeev Chaturvedi
From India, Mumbai
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