1.

Differentiate between Private Company and Public Company.

Answer»

Difference between Private Company and Public Company :

Basis of distributionPrivate CompanyPublic Company
1. Number of MembersMinimum-2 members
Maximum-20 members
Minimum-7 members
 Maximum-No limit
2. NameName should include “Private Ltd.”Name should include ‘Ltd.’
3. Number of directorsMinimum – 2 DirectorsMinimum – 3 Directors
4. Transfer of sharesRestrictedNot restricted
5. Minimum paid up capitalOne Lakh RupeesFive Lakh Rupees
6. Allotment of sharesCan allot share without receiving minimum subscriptionCannot allot shares until minimum subscription is received.



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