Public company
|
Private Company
|
Must have minimum paid capital of Rs. 5,00,000/-
|
Must have minimum paid capital
of Rs. 1,00,000/-
|
Minimum number of members
required to form a Public Company is 7
|
Minimum number of members
required to form a Private Company is 2
|
Public Company must have
atleast 3 Directors
|
Private Company must have
atleast 2 Directors.
|
Public Company cannot start its
business until a Certificate to commencement of business is issued to it.
|
A Private Company can commence
its business immediately after its incorporation
|
Five members must be present
personally to constitute quorum. Articles of Association may provide the number
of members more than the required under the Act.
|
The quorum in the case of a
Private Company is Two members present personally. Articles of Association
may provide the number of members more than the required under the Act.
|
Public Company must call its statutory Meeting and file Statutory Report with the Register of Companies. |
A Private Company has no
obligation to call the Statutory Meeting of the members.
|
No restriction of maximum
number of members
|
Maximum number is limited to 50
|
Public company is free to
invite public for subscription
|
Private company is prohibited
from inviting public for subscription of shares
|
Public Company is prone to more
statutory compliance than Private company
|
Private company enjoys
privileges over the Public company in terms of statutory compliance.
|
A Private Company enjoys some
special privileges (some are listed above), which are not available to a Public
Company.
-
A Private Company may allot shares without issuing a
prospectus or delivering to the Registrar a statement in lieu of prospectus (S.
70)
-
The provisions of S. 81 as regards further issue of
capital do not apply.
-
Restrictions on the commencement of business contained
in Section 149 do not apply.
-
One or two members may demand poll (S. 179)
-
Restriction on appointment or advertisement of
directors contained in Section 266, does not apply.
-
Companies of balance-sheet and profit and loss account
may be filed separately with the Registrar and no person other than a member of
the Company is entitled to inspect the profit and loss account.