Difference between Private and Public Limited Companies
Basis of Difference
|
Private Limited Company
|
Public Limited Company
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Number of members
|
Minimum: 2
Maximum: 50
|
Minimum: 7
Maximum: No limit
|
Number of directors
|
Minimum two directors are required.
|
Minimum three directors are required.
|
Minimum paid-up capital
|
Rs 1 lakh
|
Rs 5 lakhs
|
Prospectus
|
Not compulsory to issue prospectus or a statement in lieu of prospectus.
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Compulsory to issue prospectus or a statement in lieu of prospectus (in case of absence of prospectus).
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Minimum subscription
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Minimum subscription is not required for a private company.
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Minimum subscription is required for a public company.
|
Share certificates
|
It cannot issue share certificates.
|
It can issue share certificates.
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