What is the difference bitween private limited co. & limited co.
From India, Gurgaon
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From India, Gurgaon
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Hey Lalit,
There are a lot of differences. The major factor is the number of shareholders and shareholding pattern. In a Pvt. Ltd. company, the shareholders comprise a close group of friends and relatives. A Pvt. Ltd. company cannot make an offer for the public to subscribe to its shares. Whereas, a Ltd. company can give an advertisement and invite the general public to subscribe to its shares. Basically, a Pvt. Ltd. company is a corporate version of a partnership firm, whereas a Public Ltd. company is a full-fledged corporate body. For a Pvt. Ltd. company, a minimum of 2 shareholders is required, whereas for a Public Ltd. company, a minimum of 50 shareholders is required. A shareholder of a Public Ltd. company can transfer their shares freely at the stock exchange where the shares are listed, whereas in a Pvt. Ltd. Company, a shareholder cannot transfer their shares without the consent of other shareholders. Also, shares of the Pvt. Ltd. company cannot be listed on stock exchanges and hence cannot be traded there like shares of a Public Ltd. company. These are some of the major points of difference. For more details, you need to refer to The Indian Companies Act 1956.
Hope this information is enough for you.
Regards, Swati
From India, Delhi
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1There are a lot of differences. The major factor is the number of shareholders and shareholding pattern. In a Pvt. Ltd. company, the shareholders comprise a close group of friends and relatives. A Pvt. Ltd. company cannot make an offer for the public to subscribe to its shares. Whereas, a Ltd. company can give an advertisement and invite the general public to subscribe to its shares. Basically, a Pvt. Ltd. company is a corporate version of a partnership firm, whereas a Public Ltd. company is a full-fledged corporate body. For a Pvt. Ltd. company, a minimum of 2 shareholders is required, whereas for a Public Ltd. company, a minimum of 50 shareholders is required. A shareholder of a Public Ltd. company can transfer their shares freely at the stock exchange where the shares are listed, whereas in a Pvt. Ltd. Company, a shareholder cannot transfer their shares without the consent of other shareholders. Also, shares of the Pvt. Ltd. company cannot be listed on stock exchanges and hence cannot be traded there like shares of a Public Ltd. company. These are some of the major points of difference. For more details, you need to refer to The Indian Companies Act 1956.
Hope this information is enough for you.
Regards, Swati
From India, Delhi
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i want to know that idetification of training needs how can idetify that person require which type of training
From India, Mumbai
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From India, Mumbai
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Hi,
Dear All, I am a member of this site for almost a year (recommended by my own trainer, a lady) and have received a lot of useful and free vital information which is otherwise difficult to find.
I am basically a salesperson, having worked as a Branch Manager with a prestigious company for almost four years in the Life Insurance business.
Now, I have started my own Manpower Placements firm operating from Gurgaon. Before this business, I didn't have many contacts with HR people. However, now, since I need their support to grow my business and to have my firm empanelled with their companies, I find them unfriendly and uncooperative. They seem to overthink, lack courage, and are hesitant to help someone who approaches them. I am sure you are not like that, as I have seen people on this platform helping each other for free and offering valuable advice without any charge.
I didn't want to write this kind of email, but after reaching out to almost 20+ HR professionals for personal help, none have shown the courage to respond bravely or give me even a single chance to serve their organizations. I need your help. Can anybody assist me in this venture? I just want a chance. Can anybody recommend me to someone in a position where they can help my business? I would be very grateful.
Regards,
Khushal (9555976606, 9711196234) [concub@gmail.com] concub@gmail.com
From India, Bangalore
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Dear All, I am a member of this site for almost a year (recommended by my own trainer, a lady) and have received a lot of useful and free vital information which is otherwise difficult to find.
I am basically a salesperson, having worked as a Branch Manager with a prestigious company for almost four years in the Life Insurance business.
Now, I have started my own Manpower Placements firm operating from Gurgaon. Before this business, I didn't have many contacts with HR people. However, now, since I need their support to grow my business and to have my firm empanelled with their companies, I find them unfriendly and uncooperative. They seem to overthink, lack courage, and are hesitant to help someone who approaches them. I am sure you are not like that, as I have seen people on this platform helping each other for free and offering valuable advice without any charge.
I didn't want to write this kind of email, but after reaching out to almost 20+ HR professionals for personal help, none have shown the courage to respond bravely or give me even a single chance to serve their organizations. I need your help. Can anybody assist me in this venture? I just want a chance. Can anybody recommend me to someone in a position where they can help my business? I would be very grateful.
Regards,
Khushal (9555976606, 9711196234) [concub@gmail.com] concub@gmail.com
From India, Bangalore
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Hi Swathi,
Good. You have given an apt explanation for the difference between a Pvt and a limited company.
Regards, R. Rajan.
QUOTE=swati.jain.hr;952616]Hey Lalit..
There are a lot of differences. The major factor is the number of shareholders and shareholding pattern. In a Pvt. Ltd. company, the shareholders comprise a close group of friends and relatives. A Pvt. Ltd. company cannot make an offer for the public to subscribe to its shares. Whereas a Ltd. company can give an advertisement and invite the general public to subscribe to its shares. Basically, a Pvt. Ltd. company is a corporate version of a partnership firm, whereas a Public Ltd. company is a full-fledged corporate body. For a Pvt. Ltd. company, a minimum of 2 shareholders are required, whereas for a Public Ltd. company, a minimum of 50 shareholders is required. A shareholder of a Public Ltd. company can transfer his shares freely at the stock exchange where the shares are listed, whereas in a Pvt. Ltd. Company, a shareholder cannot transfer his shares without the consent of other shareholders. Also, shares of the Pvt. Ltd. company cannot be listed on stock exchanges and hence cannot be traded there like shares of a Public Ltd. company. These are some of the major points of difference. For more details, you need to refer to The Indian Companies Act 1956.
Hope this information is enough for you.
Regards, Swati[/QUOTE]
From India, Bangalore
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Good. You have given an apt explanation for the difference between a Pvt and a limited company.
Regards, R. Rajan.
QUOTE=swati.jain.hr;952616]Hey Lalit..
There are a lot of differences. The major factor is the number of shareholders and shareholding pattern. In a Pvt. Ltd. company, the shareholders comprise a close group of friends and relatives. A Pvt. Ltd. company cannot make an offer for the public to subscribe to its shares. Whereas a Ltd. company can give an advertisement and invite the general public to subscribe to its shares. Basically, a Pvt. Ltd. company is a corporate version of a partnership firm, whereas a Public Ltd. company is a full-fledged corporate body. For a Pvt. Ltd. company, a minimum of 2 shareholders are required, whereas for a Public Ltd. company, a minimum of 50 shareholders is required. A shareholder of a Public Ltd. company can transfer his shares freely at the stock exchange where the shares are listed, whereas in a Pvt. Ltd. Company, a shareholder cannot transfer his shares without the consent of other shareholders. Also, shares of the Pvt. Ltd. company cannot be listed on stock exchanges and hence cannot be traded there like shares of a Public Ltd. company. These are some of the major points of difference. For more details, you need to refer to The Indian Companies Act 1956.
Hope this information is enough for you.
Regards, Swati[/QUOTE]
From India, Bangalore
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Diffrence between the private co & Public Company is that In private co maximum share holder can be 50 or less than 50 but in public co it can be more then 50.
From India, New Delhi
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From India, New Delhi
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I agree with all the above.
Here is my explanation.
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; 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 the 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 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 to commence 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 issues 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 Register 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 a number of members more than the required under the Act.
14. Managerial remuneration: The 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. Whereas these restrictions do not apply to a Private Company.
15. Special privileges: A Private Company enjoys some special privileges that are not available to a Public Company.
From India, Tiruppur
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Here is my explanation.
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; 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 the 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 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 to commence 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 issues 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 Register 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 a number of members more than the required under the Act.
14. Managerial remuneration: The 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. Whereas these restrictions do not apply to a Private Company.
15. Special privileges: A Private Company enjoys some special privileges that are not available to a Public Company.
From India, Tiruppur
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Dear Swati,
It's indeed a good answer to the question. I would like to add one more point to the same.
A Private Ltd company can be migrated to a Public Ltd company. In fact, there are some foreign companies that come to India as a private Ltd company first and after their operations based on certain criteria, they migrate to a public Ltd company. Here, both the employer and the employees enjoy the benefits. For example, Metlife Insurance Co Pvt Ltd is now Metlife Insurance Co Ltd. This, in fact, adds value to the company and its employees.
Moreover, migration from a public Ltd company to a private Ltd company is possible. The board of directors takes the necessary action/steps with legal aids. For instance, Holland/Netherlands-based courier & cargo company, M/s. TNT India Ltd, is now operating as TNT India Pvt Ltd. Here, a public Ltd company can migrate to a private Ltd company and is mostly for foreign companies or organizations.
In the US, we can find a good number of companies under public Ltd rather than private Ltd brand. Whereas in Singapore, only private companies and not public organizations.
From India, Kochi
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It's indeed a good answer to the question. I would like to add one more point to the same.
A Private Ltd company can be migrated to a Public Ltd company. In fact, there are some foreign companies that come to India as a private Ltd company first and after their operations based on certain criteria, they migrate to a public Ltd company. Here, both the employer and the employees enjoy the benefits. For example, Metlife Insurance Co Pvt Ltd is now Metlife Insurance Co Ltd. This, in fact, adds value to the company and its employees.
Moreover, migration from a public Ltd company to a private Ltd company is possible. The board of directors takes the necessary action/steps with legal aids. For instance, Holland/Netherlands-based courier & cargo company, M/s. TNT India Ltd, is now operating as TNT India Pvt Ltd. Here, a public Ltd company can migrate to a private Ltd company and is mostly for foreign companies or organizations.
In the US, we can find a good number of companies under public Ltd rather than private Ltd brand. Whereas in Singapore, only private companies and not public organizations.
From India, Kochi
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Hi Swati, it was good answer, could u tell me, minimum how many employee need in a ltd. company? regards, sanjay
From India, Mumbai
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From India, Mumbai
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Formation of a company is governed by the Companies Act, 1956. Irrespective of whether a company is private limited or public limited, there is no restriction on the number of employees the company can employ or should employ. In fact, a company may not have a single employee or it may have thousands of employees.
Thanks & Regards
Hi Swati, it was a good answer. Could you tell me, how many employees are required as a minimum in a limited company?
Regards,
Sanjay
From India, Pune
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Thanks & Regards
Hi Swati, it was a good answer. Could you tell me, how many employees are required as a minimum in a limited company?
Regards,
Sanjay
From India, Pune
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hi swati..u make us undrstnd vry well d diffrce b/w dese 2 trms.. really helpful 4 all of us
From India, New Delhi
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From India, New Delhi
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Conversion of a Proprietorship into a Private Limited Company
A proprietary business may be converted into a company. A company is incorporated by making the sole proprietor as one of the subscribers to the Memorandum, i.e., he becomes the first member. In the case of a partnership firm, all the partners become subscribers to the Memorandum of the new company. Alternatively, the new company, which is incorporated, takes over the sole proprietorship or the partnership firm. There must be a specific provision in the Memorandum of the new company for taking over other businesses as one of its objects, and powers must be given to the Board of Directors by the Articles of the new company to enter into agreements for the acquisition of business.
Steps Involved in the Conversion of Proprietorship or Partnership into a Private Limited Company:
1. The first step will be incorporation of a new company with the required provisions in the Memorandum and the Articles.
2. A resolution to acquire the other business shall be passed at a General Meeting requesting the Board of Directors to do the needful.
3. The Board of Directors shall enter into an agreement with the firm for its acquisition.
4. A copy of the agreement shall be filed with the Registrar within 30 days.
5. Shares have to be allotted by the Board of Directors to the partners of the firm so acquired (if it is a partnership firm) according to the terms of the agreement.
6. A return of such allotment has to be filed with the Registrar within 30 days to complete the registration.
For help with the conversion of your existing proprietorship firm into a private limited company or for the formation of a new private limited company, visit IndiaFilings and talk to one of the Business Experts.
From India, Chennai
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A proprietary business may be converted into a company. A company is incorporated by making the sole proprietor as one of the subscribers to the Memorandum, i.e., he becomes the first member. In the case of a partnership firm, all the partners become subscribers to the Memorandum of the new company. Alternatively, the new company, which is incorporated, takes over the sole proprietorship or the partnership firm. There must be a specific provision in the Memorandum of the new company for taking over other businesses as one of its objects, and powers must be given to the Board of Directors by the Articles of the new company to enter into agreements for the acquisition of business.
Steps Involved in the Conversion of Proprietorship or Partnership into a Private Limited Company:
1. The first step will be incorporation of a new company with the required provisions in the Memorandum and the Articles.
2. A resolution to acquire the other business shall be passed at a General Meeting requesting the Board of Directors to do the needful.
3. The Board of Directors shall enter into an agreement with the firm for its acquisition.
4. A copy of the agreement shall be filed with the Registrar within 30 days.
5. Shares have to be allotted by the Board of Directors to the partners of the firm so acquired (if it is a partnership firm) according to the terms of the agreement.
6. A return of such allotment has to be filed with the Registrar within 30 days to complete the registration.
For help with the conversion of your existing proprietorship firm into a private limited company or for the formation of a new private limited company, visit IndiaFilings and talk to one of the Business Experts.
From India, Chennai
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