Differences Between Private Limited Company (Pvt Ltd) and Limited Company (Ltd): Explained

Can anyone tell me the difference between a Pvt Ltd company and a Limited company?

Dear Riyaz,

In a private limited company, the shares are kept within the company and are not available for public issuance. Additionally, the profits are solely retained within the company.

In contrast, a limited company offers its shares for public issuance, and the profits are distributed to the shareholders as dividends.

With regards,
Ashish Banka

Dear Riyaz,

As Mr. Ashish has explained, a public company can issue shares to the public to raise funds, while a private company must raise capital independently and cannot conduct a public offering.

Public companies are required to disclose their revenues, publish annual reports, and release accounting statements such as the Profit & Loss Account, Balance Sheet, and Cash Flow Statement to the public. In contrast, private companies have more privacy in these matters.

Additionally, there are differences in the minimum number of directors required for public and private companies, with public companies needing at least 3 directors compared to private companies which require a minimum of 2.

Thank you for your attention.

Best regards,
Krishna Sati