Difference Between Public And Private Company
The main dissimilarities or difference between public company and private company can be pointed out as follows:
1. Owned By
Public Company: It is publicly owned and operated
Private Company: It is privately owned and operated
2. Number Of Members
Public Company: Minimum 7 and maximum unlimited
Private Company: Minimum 1 and maximum 50
3. Issue Of Prospectus
Public Company: Compulsory
Private Company: Not required
4. Share Transfer
Public Company: Shares can be transferred easily without any restriction
Private Company: Consent is required
5. Suffix Used
Public Company: It uses "Limited" after the name
Private Company: It uses "Private Limited" after the name
6. Directors
Public Company: At least 3 directors required to run the public company
Private Company: At least 2 directors required
7. Statutory Meeting
Public Company: It is compulsory and must be held regularly
Private Company: Not compulsory
8. Regulation
Public Company: More regulation required
Private Company: Less regulation required
Also Read:
Also Read:
9.Size
Public Company: Bigger in size than private company
Private Company: Smaller than public company
10. Source of Capital
Public Company: Fund is collected by selling shares and debentures
Private Company: Fund is collected from investors
Public Company Vs Private Company (Comparison Chart)
I hope this post is helpful to understand the difference between public company and private company and to make comparison between them.
Public Company Vs Private Company (Comparison Chart)
Basis For Difference
|
Public Company
|
Private Company
|
Introduction
|
Corporation which owned and operated publicly
|
Business company which is established and operated privately
|
Members Required
|
Minimum 7
|
1-50
|
Issue Of Prospectus
|
Required
|
Not required
|
Share Transfer
|
Easy to transfer
|
Consent of partners is required
|
Suffix
|
'Limited'
|
'Private Limited'
|
Number Of Directors
|
Minimum 3
|
Minimum 2
|
Statutory Meeting
|
Compulsory
|
Not compulsory
|
Regulation Required
|
More
|
Less
|
Size
|
Big
|
Small
|
Source Of Capital
|
Issue of shares and debenture
|
Collected from partners or investors
|
I hope this post is helpful to understand the difference between public company and private company and to make comparison between them.
