| Basis | Private Company | Public Company |
| 1. Definition | A company, which by its articles restricts the right to transfer of shares and limits maximum membership up to 200 is called a Private Company. | A company that is not a private company is called a Public Company. |
| 2. Number of members | Minimum 2 and maximum 200 members. | Minimum 7 and maximum ‘No limit’ on membership. |
| 3. Number of directors | Minimum 2 directors are essential, in Private Company. | Minimum 3 directors are essential in a Public Company. |
| 4. Right to transfer shares | Shares of Private companies are not transferable. | Shares of public companies are freely transferable. |
| 5. Issue of prospectus | A private company cannot issue a prospectus. | Public companies can issue prospectus. |
| 6. Ending words | Name of the Private Company compulsory ends with “Private Limited.” | Name of Public company compulsory ends with “Limited”. |
