The key differences between a Private Limited Company and a Public Limited company are tabled below.
| Particulars | Public Limited Company | Private Limited Company |
| Minimum Number of share holders | A Public limited company requires minimum 7 share- holders. | A Private Limited Company requires minimum 2 share- holders. |
| Maximum Number of Share Holders | There is no limit for maximum number of share- holders in a Public Limited Company. | Maximum numbers of 200 share- holders are allowed in a Private Limited Company. |
| Minimum number of directors for Managing the affairs of the company. | In case of Public limited company, minimum 3 directors are required for managing the affairs of the company | In case of Private limited company, minimum 2 directors are required for managing the affairs of the company |
| Requirement of filing consent letter with ROC | The Directors of Public limited company must file consent letter with ROC to act as Director of the company. | No such requirement is needed for the Directors of private limited company. |
| Invitation to public to subscribe for share capital of the company | The promoters of the Public limited company can issue prospectus and invite public subscription to raise capital from the general public. | The promoters of private limited company are prohibited from inviting the public for the subscription of shares and debentures. |
| Transferability of company’s shares | The shares of a public limited company are freely transferable. | There are certain restrictions on transfer of shares of private limited companies. |
| Annual General Body Meeting | The statutory general meeting is compulsory for public limited company | The general meeting is not compulsory for private limited company |
| Certificate of commencement of business. | The requirement of obtaining commencement of business certificate after incorporation of company has been removed in the Companies amendment act.2015. | Under companies’ act 2013; private companies were also required to obtain commencement of business certificate after incorporation of the company. This clause has been removed in the Companies amendment act.2015. |
| Common Seal | Earlier, under companies’ act 2013 a common seal was required for any attestations on behalf of the company. The above requirement of common seal is made optional in the Companies Amendment Act 2015. | Earlier, under companies’ act 2013 a common seal was required for any attestations on behalf of the company. The above requirement of common seal is made optional in the Companies Amendment Act 2015. |
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