| Points of difference | Private company | Public company |
| Number of members | Minimum 2 and maximum 200. | Minimum 7 and maximum no limit. |
| Transfer of share | Private company puts restriction on the transfer of shares through its Articles. | One can freely transfer the shares. |
| Invitation to public | Private company cannot issue prospectus invite public to subscribe for shares or debenture | Public company can invite public to subscribe for share or debentures by issuing prospectus. |
| One person company | Private company can be of the type one-man or say one person company. One person can enter in contract with one member who is the director. | Public company cannot be a one person company and public company cannot do such contract. |
| Number of directors | A private company must have minimum 2 directors. | There must be minimum 3 directors of which one must be a female. |
| Name of company | A private company with limited liability must add the words ‘Private Limited’ at the end of company name and that with unlimited liability must add ‘Private’. | The word Limited’ is added after the name of the public company with limited liability. |
| Articles of Association | Articles of Association is to be prepared and get registered compulsorily with the Registered of Companies. | In case Articles are not prepared Model Articles stated in Schedule-1 gets automatically applicable. |
| Minimum subscription | The provisions of minimum subscription do not apply. | The provision of minimum subscription is applicable. |
| New issues | People other than the members can be offered issue of new shares. | Issue of new shares is first offered to existing members i.e. share-holders of the company. |
