Respected Seniors
Good morning, Please do tell me what is the difference among Ltd., Pvt. Ltd. and Public Limited Company. And is there any difference regarding the benefits of the workers offered by these firms or everything is same.
Best Regards
Sushma
From China, Beijing
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20Good morning, Please do tell me what is the difference among Ltd., Pvt. Ltd. and Public Limited Company. And is there any difference regarding the benefits of the workers offered by these firms or everything is same.
Best Regards
Sushma
From China, Beijing
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Dear Friend,
Ltd company is otherwise known as public limited company and pvt ltd company is a private limited company. Under public limited there are private sector company and public sector company.
The difference between pvt ltd and public ltd company is in the no. of shareholders and transferability of shares. In pvt ltd the minimum no. of shareholders is 2 and maximum is 50 excluding the past and present employees who holds shares . Whereas in public limited the minimum no. of shareholders is 7 and there is no maximum limit.
In the case of public limited co., the shares are freely transferable but it is not so in private limited company.
Some of the strigent requirements which are applicable to public limited companies are not there in the case of private limited companies.
Public sector company is a company where the central govt or state govt or both of them combined together holds the majority of shares. But in Private sector companies the private individuals or business houses holds the majority of shares.
As far as I am concerned there is no significant difference regarding the benefits to be offered by a Private Ltd or Public Ltd Companies. Most of the benefits are reliant on the no. of employees working in a concern.
Hope some of your doubts are cleared.
Thanking you
regards
Manoj Pillai
From India, Coimbatore
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Ltd company is otherwise known as public limited company and pvt ltd company is a private limited company. Under public limited there are private sector company and public sector company.
The difference between pvt ltd and public ltd company is in the no. of shareholders and transferability of shares. In pvt ltd the minimum no. of shareholders is 2 and maximum is 50 excluding the past and present employees who holds shares . Whereas in public limited the minimum no. of shareholders is 7 and there is no maximum limit.
In the case of public limited co., the shares are freely transferable but it is not so in private limited company.
Some of the strigent requirements which are applicable to public limited companies are not there in the case of private limited companies.
Public sector company is a company where the central govt or state govt or both of them combined together holds the majority of shares. But in Private sector companies the private individuals or business houses holds the majority of shares.
As far as I am concerned there is no significant difference regarding the benefits to be offered by a Private Ltd or Public Ltd Companies. Most of the benefits are reliant on the no. of employees working in a concern.
Hope some of your doubts are cleared.
Thanking you
regards
Manoj Pillai
From India, Coimbatore
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Hello:
Ltd and public ltd companies are one and the same. Pvt Ltd companies are the ones that cannot issue their shares to the public at large and the total number of shareholders in the company is limited to 20 (at least that's the way it was in 19743 when I started my company).
There are no differences relating to compensation rules between public and pvt ltd companies.
From India, Pune
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Ltd and public ltd companies are one and the same. Pvt Ltd companies are the ones that cannot issue their shares to the public at large and the total number of shareholders in the company is limited to 20 (at least that's the way it was in 19743 when I started my company).
There are no differences relating to compensation rules between public and pvt ltd companies.
From India, Pune
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Dear all, Please help me to prepare a MOU between our directors. I need some model or sample for Software based companies. Thanks for supporting a YE. Regards Deva
From India, Madras
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From India, Madras
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Distinction Between A Public Company And a Private Company
Following are the main points of difference between a Public Company and a Private Company:
1. Minimum Paid-up Capital: A company to be incorporated as a Private Company must have a minimum paid-up capital of Rs. 1,00,000, whereas a Public Company must have a minimum paid-up capital of Rs. 5,00,000.
2. Minimum Number of Members: The minimum number of members required to form a private company is 2, whereas a Public Company requires at least 7 members.
3. Maximum Number of Members: The maximum number of members in a Private Company is restricted to 50, while there is no restriction on the maximum number of members in a Public Company.
4. Transferability of Shares: There is a complete restriction on the transferability of the shares of a Private Company through its Articles of Association, whereas there is no restriction on the transferability of the shares of a Public Company.
5. Issue of Prospectus: A Private Company is prohibited from inviting the public for subscription of its shares, i.e., a Private Company cannot issue a Prospectus, whereas a Public Company is free to invite the public for subscription, i.e., a Public Company can issue a Prospectus.
6. Number of Directors: A Private Company may have 2 directors to manage the affairs of the company, whereas a Public Company must have at least 3 directors.
7. Consent of the Directors: There is no need to give consent by the directors of a Private Company, whereas the directors of a Public Company must file with the Registrar a consent to act as a Director of the company.
8. Qualification Shares: The Directors of a Private Company need not sign an undertaking to acquire the qualification shares, whereas the Directors of a Public Company are required to sign an undertaking to acquire the qualification shares of the Public Company.
9. Commencement of Business: A Private Company can commence its business immediately after its incorporation, whereas a Public Company cannot start its business until a Certificate of commencement of business is issued to it.
10. Shares Warrants: A Private Company cannot issue Share Warrants against its fully paid shares, whereas a Public Company can issue Share Warrants against its fully paid-up shares.
11. Further Issue of Shares: A Private Company need not offer the further issue of shares to its existing shareholders, whereas a Public Company has to offer the further issue of shares to its existing shareholders as right shares. Further issue of shares can only be offered to the general public with the approval of the existing shareholders in the general meeting of the shareholders only.
12. Statutory Meeting: A Private Company has no obligation to call the Statutory Meeting of the members, whereas a Public Company must call its Statutory Meeting and file a Statutory Report with the Registrar of Companies.
13. Quorum: The quorum in the case of a Private Company is TWO members present personally, whereas in the case of a Public Company FIVE members must be present personally to constitute a quorum. However, the Articles of Association may provide for a number of members more than required under the Act.
14. Managerial Remuneration: Total managerial remuneration in the case of a Public Company cannot exceed 11% of the net profits, and in case of inadequate profits, a maximum of Rs. 87,500 can be paid. These restrictions do not apply to a Private Company.
15. Special Privileges: A Private Company enjoys some special privileges not available to a Public Company.
From India, Hyderabad
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Following are the main points of difference between a Public Company and a Private Company:
1. Minimum Paid-up Capital: A company to be incorporated as a Private Company must have a minimum paid-up capital of Rs. 1,00,000, whereas a Public Company must have a minimum paid-up capital of Rs. 5,00,000.
2. Minimum Number of Members: The minimum number of members required to form a private company is 2, whereas a Public Company requires at least 7 members.
3. Maximum Number of Members: The maximum number of members in a Private Company is restricted to 50, while there is no restriction on the maximum number of members in a Public Company.
4. Transferability of Shares: There is a complete restriction on the transferability of the shares of a Private Company through its Articles of Association, whereas there is no restriction on the transferability of the shares of a Public Company.
5. Issue of Prospectus: A Private Company is prohibited from inviting the public for subscription of its shares, i.e., a Private Company cannot issue a Prospectus, whereas a Public Company is free to invite the public for subscription, i.e., a Public Company can issue a Prospectus.
6. Number of Directors: A Private Company may have 2 directors to manage the affairs of the company, whereas a Public Company must have at least 3 directors.
7. Consent of the Directors: There is no need to give consent by the directors of a Private Company, whereas the directors of a Public Company must file with the Registrar a consent to act as a Director of the company.
8. Qualification Shares: The Directors of a Private Company need not sign an undertaking to acquire the qualification shares, whereas the Directors of a Public Company are required to sign an undertaking to acquire the qualification shares of the Public Company.
9. Commencement of Business: A Private Company can commence its business immediately after its incorporation, whereas a Public Company cannot start its business until a Certificate of commencement of business is issued to it.
10. Shares Warrants: A Private Company cannot issue Share Warrants against its fully paid shares, whereas a Public Company can issue Share Warrants against its fully paid-up shares.
11. Further Issue of Shares: A Private Company need not offer the further issue of shares to its existing shareholders, whereas a Public Company has to offer the further issue of shares to its existing shareholders as right shares. Further issue of shares can only be offered to the general public with the approval of the existing shareholders in the general meeting of the shareholders only.
12. Statutory Meeting: A Private Company has no obligation to call the Statutory Meeting of the members, whereas a Public Company must call its Statutory Meeting and file a Statutory Report with the Registrar of Companies.
13. Quorum: The quorum in the case of a Private Company is TWO members present personally, whereas in the case of a Public Company FIVE members must be present personally to constitute a quorum. However, the Articles of Association may provide for a number of members more than required under the Act.
14. Managerial Remuneration: Total managerial remuneration in the case of a Public Company cannot exceed 11% of the net profits, and in case of inadequate profits, a maximum of Rs. 87,500 can be paid. These restrictions do not apply to a Private Company.
15. Special Privileges: A Private Company enjoys some special privileges not available to a Public Company.
From India, Hyderabad
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Dear Seniors,
Please inform me about the difference between Ltd and Pvt Ltd as per present law. Also, kindly clarify whether every Ltd company listed on the stock exchange is necessary or not. There are companies claiming to be Ltd companies but are not listed on the stock exchange; can they sell or transfer their shares to anyone? If so, how does this process work?
Thank you.
From India, Delhi
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Please inform me about the difference between Ltd and Pvt Ltd as per present law. Also, kindly clarify whether every Ltd company listed on the stock exchange is necessary or not. There are companies claiming to be Ltd companies but are not listed on the stock exchange; can they sell or transfer their shares to anyone? If so, how does this process work?
Thank you.
From India, Delhi
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Thanks a lot to Sushma (who raised the question), Mr. Manoj Pillai and Shufiyan, for providing a gud piece of info to me too. Regards, Vinish Kumar Cochin.
From India, Kochi
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From India, Kochi
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Private Ltd Companies:
The shareholders' requirements are a minimum of 2. The liabilities are restricted to the shareholders' personal wealth and stakes, proportionately.
Any two shareholders/directors, in a 3-member organization, can pass any resolution for the company.
There are no qualifications for the appointment of the directors.
No working experience is required.
There are fewer legal obligations to be fulfilled in the Company Law Board.
The companies are to submit the annual profit and loss account to the Registrar of Companies.
Any appointment/resignation is to be informed to the ROC.
In a Public Ltd. company, there have to be a minimum of 7 shareholders to invest for a minimum of one share.
The liabilities of the shareholders are prime.
Regular Board Meetings are to be called.
Annual General Body Meetings are to be held every year.
Decisions about the company's activities are to be ratified by the shareholders in the AGMs.
The majority of the shareholders, through the directors, can pass any resolution for the betterment of the company.
For passing any special resolution for the company, board members would require at least 76% of votes of the shareholders to pass the same.
Such resolutions, if passed, can be very serious in nature.
All such resolutions are to be sent to the ROC.
There are requirements for maintaining the Minutes' Book of the company.
The shareholders cannot be denied to inspect the minutes' book.
The Board of Directors is to be qualified to run a company.
Although there may be several directors in such a company, the financial implications involve the entire shareholders, irrespective of each director's stake.
Any aggrieved minority shareholder (a group), having more than 5% shares, if he feels that the company is doing something wrong against their interests, can file a petition in the CLB under sections 398-399 of the Companies Act 1956 for mismanagement and winding up of the company.
The obligations are too many to protect the interests of the shareholders having 5%+ shares.
As per the new laws, there has to be a company secretary in a public ltd company.
These companies are eligible to float IPO if there are profits for the last three years for any expansion projects, subject to the approval of SEBI.
I think this information is sufficient for you.
Pooja Sharma Parmar
From India, Pune
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The shareholders' requirements are a minimum of 2. The liabilities are restricted to the shareholders' personal wealth and stakes, proportionately.
Any two shareholders/directors, in a 3-member organization, can pass any resolution for the company.
There are no qualifications for the appointment of the directors.
No working experience is required.
There are fewer legal obligations to be fulfilled in the Company Law Board.
The companies are to submit the annual profit and loss account to the Registrar of Companies.
Any appointment/resignation is to be informed to the ROC.
In a Public Ltd. company, there have to be a minimum of 7 shareholders to invest for a minimum of one share.
The liabilities of the shareholders are prime.
Regular Board Meetings are to be called.
Annual General Body Meetings are to be held every year.
Decisions about the company's activities are to be ratified by the shareholders in the AGMs.
The majority of the shareholders, through the directors, can pass any resolution for the betterment of the company.
For passing any special resolution for the company, board members would require at least 76% of votes of the shareholders to pass the same.
Such resolutions, if passed, can be very serious in nature.
All such resolutions are to be sent to the ROC.
There are requirements for maintaining the Minutes' Book of the company.
The shareholders cannot be denied to inspect the minutes' book.
The Board of Directors is to be qualified to run a company.
Although there may be several directors in such a company, the financial implications involve the entire shareholders, irrespective of each director's stake.
Any aggrieved minority shareholder (a group), having more than 5% shares, if he feels that the company is doing something wrong against their interests, can file a petition in the CLB under sections 398-399 of the Companies Act 1956 for mismanagement and winding up of the company.
The obligations are too many to protect the interests of the shareholders having 5%+ shares.
As per the new laws, there has to be a company secretary in a public ltd company.
These companies are eligible to float IPO if there are profits for the last three years for any expansion projects, subject to the approval of SEBI.
I think this information is sufficient for you.
Pooja Sharma Parmar
From India, Pune
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respected pilai sir, thanks a lot to share with us your knowledge.please guide us how can i set up pvt ltd company from very beginning.whats the steps. regard kuldeep mewara 8802244054
From Canada, Regina
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From Canada, Regina
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