lisa
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There are lot of differences. The major factor is number of shareholders and shareholding pattern. In Pvt. Ltd. company the share holders comprises of close group of friends and relatives. A Pvt. Ltd. company can not make an offer for public to subscribe it's shares. Where as a Ltd. company can given an advertisement and invite general public to subscribe for it's shares. Basically a Pvt. Ltd. company is a corporate version of partnership firm where as a Public Ltd. company is a full fledged corporate body. For a Pvt. Ltd. company minimum 2 shareholders are required whereas for Public Ltd. company minimum 50 sharehoders are required. A share holder of a Public Ltd. company can transfere his shares freely at the stock exchange where the sahres are listed whereas in a Pvt. Ltd. Company a shareholder can not transfer his shares without the consent of other shareholders. Also shares of the Pvt. Ltd. company can not be listed on stock exchanges and hence can not be traded there like shares of a Public Ltd. company. These are some of the major points of diference. For more details you need to refer The Indian Companies Act 1956.
In short a Private Limited is a fully owned company by group of promoters. All shares of the company are in private hands. In Limited Company, which is in fact Public Limited, who's owners are Public, and shares are open to to anyone to buy and sell and keep it. Maximum share holder runs the company, as per Company Law.
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raj
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ltd. co. have share holders from public, u need 2 issue. share 2 public, it is known as public ltd.
well as pvt. ltd. is where u issue share between your friends and family only. its not for public... the shares r not issued in public..
there r lots of other diff. reasons too, but a short and very simple one is this. |
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digesh s
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In Section 3 of the Companies Act, 1956 give your answer.
Limited Company means that It has minimun Paid-up Capital is Rs. 5 Lac and Private Limited Company has Rs. 1 Lac.
In Limited Company their is only 3 Directors and where in Private Limited Company only 2 Directors.
In Limited Company their is minimun No of Memers is 7 and its max. No of Members is no limit. Where in Private Limited Company min. of Members is 2 and max. no of Members is only 50.
It is not neceary that every Limited Company is listed on reconized stock exchange.
It is also not that every limited Company has to isuee shares for public.
According to Section 43A of the Companies Act, 1956 Private Limited Company bocome limited Company.
If you want to how it hapen just read Company law or Corporate laws for it.
for more information just read Companies Act, 1956, Company Law or Corporate Laws in Companies Act, 1956.
In the Companies Act, 1956 Limited Company has to follow the all the Sectiion for doing business. In Private Limited Company its not reqcuired.
When Limited Company onec incorporated it has to take Certificate for Commencment of Business from ROC (Registrar of Companies) According to Section 149 of the Companies ACt, 1956.
Where Private limited Company can do its business after its Incorporation.
Their is much more Difference between Ltd. and Pvt. Ltd Company.
If you want know read Comapnies Act, 1956
If you have more Questions just e-mail me I do my best for it.
Thanking You.
Digesh Shah
digesh_c.s2008@yahoo.co.in
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ARUN L
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Ltd Company is entitled to invite/accept investment from Public in the Equity share capital of the Company through IPO(Initial Public Offer) or through private placement.Pvt Ltd Company can not invite investment in the Equity share capital from Public. |
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Begum
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Ltd Company is entitled to invite/accept investment from Public in the Equity share capital of the Company through IPO(Initial Public Offer) or through private placement.Pvt Ltd Company can not invite investment in the Equity share capital from Public. |
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g.rangamannar
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it is simple
in a limited company investment in the cmpany is limited among family members
in private limited investment in the company is invited from public |
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Manish G
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There are lot of differences. The major factor is number of shareholders and shareholding pattern. In Pvt. Ltd. company the share holders comprises of close group of friends and relatives. A Pvt. Ltd. company can not make an offer for public to subscribe it's shares. Where as a Ltd. company can given an advertisement and invite general public to subscribe for it's shares. Basically a Pvt. Ltd. company is a corporate version of partnership firm where as a Public Ltd. company is a full fledged corporate body. For a Pvt. Ltd. company minimum 2 shareholders are required whereas for Public Ltd. company minimum 50 sharehoders are required. A share holder of a Public Ltd. company can transfere his shares freely at the stock exchange where the sahres are listed whereas in a Pvt. Ltd. Company a shareholder can not transfer his shares without the consent of other shareholders. Also shares of the Pvt. Ltd. company can not be listed on stock exchanges and hence can not be traded there like shares of a Public Ltd. company. These are some of the major points of diference. For more details you need to refer The Indian Companies Act 1956.
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yogiraj
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Pvt Ltd company can have a minimum of 2 shareholder and not exceeding 20.It cannot bring out a public offer and also its share is not listed in the stock exchange.
A Ltd. company also called public limited company can have more than 30 shareholders and can bring out a public offer for shares or debentures or convertible debentures. |
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nishi
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pvt. co. ltd. means it is a registered co. or this co. is a private means its a two or more partener dead writen & its writen what is the share holder in profit this co.if this co. |
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VEDHARAMAN V
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It is an extension of partnership, where you wish to limit your liability to your share of capital deployed in the business excluding your personal assets from unlimited liability threat like in partnership. You may also wish to exceed promoter/partner head counts beyond partnership firm limit stipulated by law for want of capital, knowledge and other benefits.
This extension facilitated by private limited mode of business is only to limited extent. When you wish to go beyond this limit for different reasons Public limited is the next best option available
Bank type of financial firms has much more stipluations than an ordinary firm for this type of firms, where number is much less. There are other stipulations for Bank type of financial firms
Govt is contemplating an idea of bringing limited liability concept to partnership type of business also. Ofcourse some tags may be attached |
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rajan l
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Private limited companies have a few share holders and hence it is run with a few directors who normally own all the shares and the company. usually are family owned and came out of partnership companies.
Public limited companies are owned my many share holders and run in a more open manner with accounts audited by Auditors and members are informed about all important activities.
Many private limited companies slowly become public limited by offering shares outside their circle.
But many public limited companies are also used to swindle share holder's money and the directors vanish with share holder's money. I am holding shares of 23 companies who have shut down the companies and vanished.
Two of the companies are owned by the relatives of the directors of Ranbaxy and Max group ( Montari Industries Ltd and Montari Leather ltd) |
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Pilla P
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Limited company is owned by Government whereas Private limited company is owned by the private organisation |
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sabhayarakeshs
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limited com.hasbeenpublikcom. and pvt.itd com.between 2to50 membar
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sanddy2010
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ltd is chota recharge & pvt.ltd 100 ka recharge compulsory |
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Mera Bharat Mahan
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A Pvt. Ltd. company can not make an offer for public to subscribe it's shares. Where as a Ltd. company can given an advertisement and invite general public to subscribe for it's shares. For a Pvt. Ltd. company minimum 2 shareholders are required whereas for Public Ltd. company minimum 50 sharehoders are required. A share holder of a Public Ltd. company can transfer his shares freely at his will thru stock exchange whereas in a Pvt. Ltd. Company a shareholder can not transfer his shares without the consent of other shareholders.
Private Limited is a fully owned company by group of promoters. All shares of the company are in private hands. In Public Limited Company owners are Public, and shares are open to anyone to buy and sell at the market value of the shares on profit motives.
This had been answered by me in this session itself about one and a half year back - Prof. M. Varma |
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pavithra s
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govt & pvt
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vivek anand
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In a PVT limited company, the liability is limited to themselves
where as in the case of public limited co., they are answerable to the public who are also the shareholders. |
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Focus
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A Limited can be a Public Ltd. or a Private Ltd.
A Public Ltd. company generally involves capital raised from the public. |
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Natarajan D
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Ltd is nothing but Public Ltd company where minimum 7 members and there is no limit for maximum members for formation of public limited company. Shares are offered in the open market for the public to participate in the investment of public limited company. Whereas Private limited company mimum 2 members and maximum of 50 members and public limited paid up share capital is mimum 5 lacs whereas pvt minimum paid up capital is one lac.
According to Section 3(1)(iii) a Private Company is one which :
Has a minimum paid-up capital of one lakh rupees.
Restricts the right to transfer its shares (any restriction that enables the directors to maintain minimum limit of two members and the maximum limit of 50 members, shall serve the purpose).
Limits the number of its members to 50. This number does not include employees of the company and the ex-employees of the company who are still members of the company.
Prohibits the subscription of shares or debentures from general public.
V. Prohibits any invitation or acceptance of deposits from any person except its members, directors or their relatives.
According to Section 3(1)(iv), a Public Limited Company is a one which:
Is not a private company.
Has a minimum paid-up capital of Rs five lakhs.
Is a private company which is a subsidiary of a public company. |
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nature
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In case of Limited companies, always referring to Public Limited Companies, the liabilities of the promoters or directors are 'limited'. In a Private limited Company, the liabilities of the promoters or directors are 'unlimited'. In the event of dissolution,in case of private limited companies, even the personal and private properties of promoters or directors are taken into out to pay off the creditors; in case of Limited companies, only the assets held by the company in its name will be used for the purpose. That is meaning of the term 'limited'. relating to liability in the event of dissolution.
Of course there are too many other differences. |
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king
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A private limited company is a company which does not invite part of ownership by way of share capital from general public; whereas a public limited company is a company which invites capital from general public, by way of shares. |
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nick j
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There is no big difference, both have limited liability which means if required, directors of company can eat investor money & can easily get away with paying limited liability or no liability. |
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ironman
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a Ltd or a public ltd company has no restriction on maximum umber so sharehlders and has to domply with stricter and more comprehensive regulations. a pvt lt company cannot have more than fifty shareholders, is less regulated, has to comply with les formalities and there is restricyion on transfer of shares unlike public limited company. |
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