1. Learn
  2. Companies

Private Limited Company vs Public Limited Company

May 23, 2017 by Tejaswi Kumar Singh

Private Limited Company cannot have more than 200 Shareholders, but a public limited company can have unlimited number of Shareholders. Even Rights to trade shares in the general public is also prohibited in Private Limited Company and a Public Limited Company can list their companies in BSE and NSE to trade shares with the general public.

Public Limited Company is an up gradation of Private Limited Company. Private Limited Company considered to be the first level for the start-ups and once business starts growing. It is preferable to convert it into a Public Limited Company to manage the funding and projects of the business. 

Following are the points by which you can see the difference between a Private Limited and Public Limited Company

Particulars Private Limited Company Public Limited Company

Number of Shareholders

 Minimum 2 and Maximum 200 Minimum 7 and Maximum No Limit

Stock/Share Trading

 Rights to Make Public Offer is Prohibited under Companies Act 2013 Right to Make Public Offer is Available under Companies Act 2013

Compliance

 Compliance for the Core business are Mandatory Compliance for Core business and SEBI compliance are also Mandatory

Registration Cost

 It cost around 12,000/- to 15,000/- It cost around 35,000/- to 40,000/-

Taxation Requirements

 Less tax returns filings More tax returns filings

Related Articles