plz help me whats the major differences between private limited & limited company
From India, Chandigarh
From India, Chandigarh
Hi,
A company is called a private limited when all its shares are in private hands. A Pvt Ltd Company is owned by a group of promoters. On the other hand, the shares in a Public Limited company are open to everyone. The company is not in the hands of a few promoters, but the public owns it.
There is also a difference in the number of shareholders in the two types of companies. In Private Limited companies, the minimum number of shareholders should be two, and the maximum is 50. On the other hand, the minimum number of shareholders in a Public Ltd Company is seven, and there is no limit to the maximum number of shareholders.
When talking about shares, the shares can be freely transferred in a Public Limited Company, whereas it is not possible in a Private Limited company. If ever the shares of a Pvt Ltd company have to be transferred, the consent of the shareholders must be sought. Pvt Ltd Company cannot make a public offer of its shares. On the contrary, Ltd companies can make a public offer through advertisements.
The shares of a Limited company are listed in the stock exchange, whereas it is not the case for a Private Limited Company. This means that trading happens with a Ltd company in the stock exchange, and nothing of that sort happens with a Pvt Ltd company.
A Private Limited company is a partnership firm, whereas a Public Limited company is a full-fledged corporate body.
From India, New Delhi
5A company is called a private limited when all its shares are in private hands. A Pvt Ltd Company is owned by a group of promoters. On the other hand, the shares in a Public Limited company are open to everyone. The company is not in the hands of a few promoters, but the public owns it.
There is also a difference in the number of shareholders in the two types of companies. In Private Limited companies, the minimum number of shareholders should be two, and the maximum is 50. On the other hand, the minimum number of shareholders in a Public Ltd Company is seven, and there is no limit to the maximum number of shareholders.
When talking about shares, the shares can be freely transferred in a Public Limited Company, whereas it is not possible in a Private Limited company. If ever the shares of a Pvt Ltd company have to be transferred, the consent of the shareholders must be sought. Pvt Ltd Company cannot make a public offer of its shares. On the contrary, Ltd companies can make a public offer through advertisements.
The shares of a Limited company are listed in the stock exchange, whereas it is not the case for a Private Limited Company. This means that trading happens with a Ltd company in the stock exchange, and nothing of that sort happens with a Pvt Ltd company.
A Private Limited company is a partnership firm, whereas a Public Limited company is a full-fledged corporate body.
From India, New Delhi
Thank you for wonderful explanation Garima i have a query as according to the HR which company will be good for the career is it pvt ltd or public ltd.... Regards, Ramkishore
From India, Bangalore
From India, Bangalore
Hi there,
I have experience working with both types of companies, so in my opinion, it shouldn't be judged based on private or public limited status. It depends on where your work profile is strong and where you find a good environment because, ultimately, what matters is your satisfaction, which is based on your work profile.
From India, New Delhi
I have experience working with both types of companies, so in my opinion, it shouldn't be judged based on private or public limited status. It depends on where your work profile is strong and where you find a good environment because, ultimately, what matters is your satisfaction, which is based on your work profile.
From India, New Delhi
Dear Garima, Really nice information about difference between Pvt Ltd Company and Public Ltd company. Thanks a lot for sharing your knowledge in this forum. Regards, Sravan
From India, Hyderabad
From India, Hyderabad
Hi,
The difference between a Public Limited and Private Limited company is very technical. Garima has explained it very nicely. I also agree with her that it does not matter which type of company you work for. You should focus on your role within the company.
Regards,
CS Mukesh TANK
From India, Mumbai
The difference between a Public Limited and Private Limited company is very technical. Garima has explained it very nicely. I also agree with her that it does not matter which type of company you work for. You should focus on your role within the company.
Regards,
CS Mukesh TANK
From India, Mumbai
Hi Heli,
The shares of a Private Limited Company are closely held, i.e., the ownership is controlled by a few persons (could be a natural person or an artificial person like a company, trust, etc.). Also, since the shares of a private limited company are closely held, the reporting structure and regulatory framework for maintaining a Private Limited Company is considerably easier when compared to a Public Limited Company.
The shares of a Public Limited Company, on the other hand, are held by a large number of people, and the shares of Public Limited Companies are traded on a stock exchange like the BSE / NSE. Since a large number of people from the public are invested in a public limited company, SEBI is also involved in monitoring a Public Limited Company, and the reporting requirements are much more stringent.
Hope this helps!
From India, Chennai
The shares of a Private Limited Company are closely held, i.e., the ownership is controlled by a few persons (could be a natural person or an artificial person like a company, trust, etc.). Also, since the shares of a private limited company are closely held, the reporting structure and regulatory framework for maintaining a Private Limited Company is considerably easier when compared to a Public Limited Company.
The shares of a Public Limited Company, on the other hand, are held by a large number of people, and the shares of Public Limited Companies are traded on a stock exchange like the BSE / NSE. Since a large number of people from the public are invested in a public limited company, SEBI is also involved in monitoring a Public Limited Company, and the reporting requirements are much more stringent.
Hope this helps!
From India, Chennai
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