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what is the difference between public company and private
company
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Answer Posted / divya n r
Private company means a company which has a minimum paid-up
capital of one lakh rupees , restricts the right to
transfer its shares, limits the number of its members to
fifty and prohibits any invitation to the public to
subscribe for any shares or debentures of the company and
also prohibits any invitation or acceptance of deposits
from persons other than its members, directors or their
relatives. to form a private company only 2 members are
required.
A minimum of 7 members are required to form a public
limited company.It must have minimum paid-up capital of Rs
5 lakhs. There is no restriction on maximum number of
members. The shares allotted to the members are freely
transferable.These companies can raise funds from general
public through open invitations by selling its shares or
accepting fixed deposits.These companies are required to
write either ‘public limited’ or ‘limited’ after their names
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