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What is the difference bitween private limited co. & limited co.
Hey Lalit..

There are lot of differences. The major factor is number of shareholders and shareholding pattern. In Pvt. Ltd. company the sahre holders comprise of close group of friends and relatives. A Pvt. Ltd. company can not make an offer for public to subscribe it's shares. Where as a Ltd. company can given an advertisement and invite general public to subscribe for it's shares. Basically a Pvt. Ltd. company is a corporate version of partnership firm where as a Public Ltd. company is a full fledged corporate body. For a Pvt. Ltd. company minimum 2 shareholders are required whereas for Public Ltd. company minimum 50 sharehoders are required. A share holder of a Public Ltd. company can transfere his shares freely at the stock exchange where the sahres are listed whereas in a Pvt. Ltd. Company a shareholder can not transfer his shares without the consent of other shareholders. Also shares of the Pvt. Ltd. company can not be listed on stock exchanges and hence can not be traded there like shares of a Public Ltd. company. These are some of the major points of diference. For more details you need to refer The Indian Companies Act 1956

Hope this information is enough for you.

Regards
Swati

i want to know that idetification of training needs how can idetify that person require which type of training
Hi,:razz:

Dear All I am a member of this site from almost a year (recomended by my own trainer lady) and have got a lot of usefull & free vital information which otherwise is difficult to find.

I am basically a sales person having worked as a Branch Manager with a prestigeous Company for almost four years in Life Insurasnce biz.

Now I have started my own Manpower Placements firm operating from Gurgaon and before this own business i didn't had much of contacts with HR people , but now since i need their supports to get business and get my firm empanelled on their companies i find them nonfriendly and very uncoperative they thinks a lot,lacks courage and are a lot hesitant to help somebody who comes to their doors , which i am sure you guys are not as i have seen you people helping each other free of cost and giving vital advises w/o any fee.

I dont wanna write this kind of mail but after rquesting almost 20+ HR people to help me personnaly none has shown courage to respond bravely and give me even single chance to serve their organisations...i need your help.... can anybody help me in this venture i just wants a chance can any body recomend me to somebody at a post wherein he can help me in my business , I shall be very grateful to them .

Regards,

Khushal (9555976606,9711196234) (concub@gmail.com)[HTML][/HTML]

Hi Swathi,
Good. You have given an apt explanation for the difference between a pvt and a limited company.

Regards,
R.Rajan.

QUOTE=swati.jain.hr;952616]Hey Lalit..

There are lot of differences. The major factor is number of shareholders and shareholding pattern. In Pvt. Ltd. company the sahre holders comprise of close group of friends and relatives. A Pvt. Ltd. company can not make an offer for public to subscribe it's shares. Where as a Ltd. company can given an advertisement and invite general public to subscribe for it's shares. Basically a Pvt. Ltd. company is a corporate version of partnership firm where as a Public Ltd. company is a full fledged corporate body. For a Pvt. Ltd. company minimum 2 shareholders are required whereas for Public Ltd. company minimum 50 sharehoders are required. A share holder of a Public Ltd. company can transfere his shares freely at the stock exchange where the sahres are listed whereas in a Pvt. Ltd. Company a shareholder can not transfer his shares without the consent of other shareholders. Also shares of the Pvt. Ltd. company can not be listed on stock exchanges and hence can not be traded there like shares of a Public Ltd. company. These are some of the major points of diference. For more details you need to refer The Indian Companies Act 1956

Hope this information is enough for you.

Regards
Swati[/QUOTE]

Diffrence between the private co & Public Company is that In private co maximum share holder can be 50 or less than 50 but in public co it can be more then 50.
I agree with all the above. . . . . .
Here is my explanation. . . .

Distinction Between A Public Company And a Private Company – Following are the main points of difference between a Public Company and a Private Company :-

1. Minimum Paid-up Capital : A company to be Incorporated as a Private Company must have a minimum paid-up capital of Rs. 1,00,000, whereas a Public Company must have a minimum paid-up capital of Rs. 5,00,000.

2. Minimum number of members : Minimum number of members required to form a private company is 2, whereas a Public Company requires atleast 7 members.

3. Maximum number of members : Maximum number of members in a Private Company is restricted to 50, there is no restriction of maximum number of members in a Public Company.

4. Transerferability of shares : There is complete restriction on the transferability of the shares of a Private Company through its Articles of Association , whereas there is no restriction on the transferability of the shares of a Public company

5 .Issue of Prospectus : A Private Company is prohibited from inviting the public for subscription of its shares, i.e. a Private Company cannot issue Prospectus, whereas a Public Company is free to invite public for subscription i.e., a Public Company can issue a Prospectus.

6. Number of Directors : A Private Company may have 2 directors to manage the affairs of the company, whereas a Public Company must have atleast 3 directors.

7. Consent of the directors : There is no need to give the consent by the directors of a Private Company, whereas the Directors of a Public Company must have file with the Registrar a consent to act as Director of the company.

8. Qualification shares : The Directors of a Private Company need not sign an undertaking to acquire the qualification shares, whereas the Directors of a Public Company are required to sign an undertaking to acquire the qualification shares of the public Company .

9. Commencement of Business : A Private Company can commence its business immediately after its incorporation, whereas a Public Company cannot start its business until a Certificate to commencement of business is issued to it.

10. Shares Warrants : A Private Company cannot issue Share Warrants against its fully paid shares, Whereas a Public Company can issue Share Warrants against its fully paid up shares.

11. Further issue of shares : A Private Company need not offer the further issue of shares to its existing share – holders, whereas a Public Company has to offer the further issue of shares to its existing share – holders as right shares. Further issue of shares can only be offer to the general public with the approval of the existing share – holders in the general meeting of the share – holders only.

12. Statutory meeting : A Private Company has no obligation to call the Statutory Meeting of the member, whereas of Public Company must call its statutory Meeting and file Statutory Report with the Register of Companies.

13. Quorum : The quorum in the case of a Private Company is TWO members present personally, whereas in the case of a Public Company FIVE members must be present personally to constitute quorum. However, the Articles of Association may provide and number of members more than the required under the Act.

14. Managerial remuneration : Total managerial remuneration in the case of a Public Company cannot exceed 11% of the net profits, and in case of inadequate profits a maximum of Rs. 87,500 can be paid. Whereas these restrictions do not apply on a Private Company.

15. Special privileges : A Private Company enjoys some special privileges, which are not available to a Public Company.. . . .

Dear Swati,

Its indeed a good answer to the question. I would like to add one more point to the same.

A Private Ltd company can be migrated to a Public Ltd company. Infact, there are some foreign companies who comes to india as private ltd company first and after their operations based on certain criteria, they migrate to public ltd company. Here both the employer and the employees enjoy the benefits. For example: Metlife insurance co pvt ltd is now metlife insurance co ltd. this infact, adds the value of the company and its employees.

Moreover, migration from public ltd company to private ltd company is possible. Where the board of directors take the necessary action/steps with legal aids. Holland/Netherland based courier & cargo company, M/s. TNT India Ltd is now operating as TNT India pvt ltd. Here a public ltd company can migrate to private ltd company and is mostly for foreign companies or organisations.

In US we can find a good chunk of companies under public ltd rather than private ltd brand. Where as in Singapore, only private companies and not public organisations.


Hi Swati, it was good answer, could u tell me, minimum how many employee need in a ltd. company? regards, sanjay

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