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Answer» Difference between Private Company and Public Company : | Basis of distribution | Private Company | Public Company | | 1. Number of Members | Minimum-2 members Maximum-20 members | Minimum-7 members Maximum-No limit | | 2. Name | Name should include “Private Ltd.” | Name should include ‘Ltd.’ | | 3. Number of directors | Minimum – 2 Directors | Minimum – 3 Directors | | 4. Transfer of shares | Restricted | Not restricted | | 5. Minimum paid up capital | One Lakh Rupees | Five Lakh Rupees | | 6. Allotment of shares | Can allot share without receiving minimum subscription | Cannot allot shares until minimum subscription is received. |
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