what is difference between pvt ltd company and ltd company
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what is difference between pvt ltd company and ltd company

amitcholle Started The Discussion:

please tell me what is difference between pvt ltd company and ltd company?

shreekanth.pr - Member Since: Sep 2007
Dear Amith, In Private Limited Company the company shares are owned by Directors and Promoters. In Limited Company or Public Limited Company the company shares are owned by the public.

kunapradhan - Member Since: Sep 2009
what is difference between pvt ltd company and ltd company?

Well there have lots different between pvt ltd company and ltd company,

1. Pvt. ltd is wholly private follow the rules and regulation of govt. but implement as its own rules, where as LTD company simply follow the govt rules and implement as per govt.
2. In Private CEO/ chairman is the owner of the co. where as in LTD there have a govt appoint person.
3. In Ltd u got bonus/ gratuity and other benefits where as pvt have some restriction from them.
4. In Ltd u got leave per year where as in pvt no work no pay.

like lots of benefits were restricted in pvt. company.

Kunal

M.L.Bhargava - Member Since: Jul 2007
In a private limited company number of share holders is between 7 to 50 whereas in public limited company number should be minimum 7 but for maximum there is no limit. Both private limited as well as public limited companies need to make their own working guide lines/rules and in the form of memorandum and articles of association need to get these registered with registrar of companies which has office in the capital of each state where company is going to get it self operative/working.

RajAmruth - Member Since: Sep 2010
hi
Amitcholle

In a private company the shares are owned by the company,s directors and members only but in the case of a public limited company the shares can be owned by anyone
In case of any private company its liabilities were shared by all the share holders, if you and me are the persons those we have shares, If the company has grown well and it has got a profit and this profit will be divided as dividend on the par value of the share. Just assume that the company is running in loss and it want to pay all those assets belonging to that company, then the total investment or the entire liabilities will be taken form our side.
In case of any public limited company the profit will be divided but in case of any loss there will not be any trouble to the investor. i:e the company is limited to its liabilities
thank you
M.Raj Amruth

RajAmruth - Member Since: Sep 2010
hi
Amitcholle

In a private company the shares are owned by the company,s directors and members only but in the case of a public limited company the shares can be owned by anyone
In case of any private company its liabilities were shared by all the share holders, if you and me are the persons those we have shares, If the company has grown well and it has got a profit and this profit will be divided as dividend on the par value of the share. Just assume that the company is running in loss and it want to pay all those assets belonging to that company, then the total investment or the entire liabilities will be taken form our side.
In case of any public limited company the profit will be divided but in case of any loss there will not be any trouble to the investor. i:e the company is limited to its liabilities
thank you
M.Raj Amruth

sanjeevicra - Member Since: Sep 2010
Public limited company shall have at least three Directors.

A Private company which is subsidiary of a public company is also a public company.

Public limited company has to obtain Certificate of Commencement of business from the Registrar of Companies before it can commence business on incorporation

In Public limited company, A prospectusor a statement in lieu thereof has to be filed with Registrar of Companies before allotment of shares.

In Public limited company, Its shares are easily transferable and since these can be quoted on a recognised stock exchange, their liquidity is enhanced.

In public limited company, it can have any number of members and it is easy for it to raise capital through public subscriptions.

Anurag Jain - Member Since: Mar 2007
Hi, Please see the attachment. — — — — — — — — — — — — — — — —


Attached FilesProvided by community member Anurag Jain. Join us to learn and grow with your peers.
File Type: doc Difference between a Private Ltd and Public Ltd [1].doc (38.0 KB, 774 views)
rcsrcs1 - Member Since: Jul 2009
Dear amitcholle,

The Companies Act, 1956 Bare Act

Definitions of "private company"

(iii) "private company" 5[means a company which has a
minimum paid-up capital of one lakh rupees or such higher paid-up capital as may be prescribed, and by its
articles,-]


(a) restricts the right to transfer its shares, if any;

(b) limits the number of its members to fifty


(c) prohibits any invitation to the public to subscribe for

any shares in, or debentures of, the company;


6[(d) prohibits any invitation or acceptance of deposits
from persons other than its members, directors or their
relatives:]

Provided that where two or more persons hold one or more shares in a company jointly,
----------
Definitions of "public company"

7[(iv) "public company" means a company which-


(a) is not a private company;

(b) has a minimum paid-up capital of five lakh rupees or
such higher paid-up capital, as may be prescribed;

(c) is a private company which is a subsidiary of a company which is not a private company.]
---------

Thanks & Regards,
R.Chandrasekar
Accountant
Mobile: +91-9344564849
E-mail:
Skype: visionsekar
-----------

M.L.Bhargava - Member Since: Jul 2007
Please note CEOs of public limited companies are appointed by government only if government holds more then 51% share holding in the company. If shareholding is shared between promoters and public then choice of CEO is made by share holders only. As is the case in companies of various prominent industrial giants.
I suppose I have clarified the position.

With good wishes
Quote:
Originally Posted by kunapradhan View Post
what is difference between pvt ltd company and ltd company?

Well there have lots different between pvt ltd company and ltd company,

1. Pvt. ltd is wholly private follow the rules and regulation of govt. but implement as its own rules, where as LTD company simply follow the govt rules and implement as per govt.
2. In Private CEO/ chairman is the owner of the co. where as in LTD there have a govt appoint person.
3. In Ltd u got bonus/ gratuity and other benefits where as pvt have some restriction from them.
4. In Ltd u got leave per year where as in pvt no work no pay.

like lots of benefits were restricted in pvt. company.

Kunal



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