Difference between Ltd. and Pvt. Ltd. Company

Difference between Ltd. and Pvt. Ltd. Company

There are many people who wish to have their own business and this blog is for them only. If you already have a plan about the kind of work you want to do and you are just a step away from starting your business because you are confused about naming your company as Ltd. or Pvt. Ltd. Here is a solution to your confusion as we are going to mention a few differences between both the types of companies so that you can decide better which one you should go for according to your services.


Ltd. is a Public Company while Pvt. Ltd. is a Private Limited Company and the main differences between them are:

In a private company the minimum paid-up capital has to be of Rs. 1 Lakh. Whereas, in a public company, the minimum paid-up capital is needed to be of Rs. 5 Lakh. And if you can fulfill this requirement, your business can be registered as Ltd. Company.

A public company is required to have a minimum of 7 members according to the law while there is no restriction on a maximum number of members. On the other hand, a private company can be formed with a minimum of 2 members and a maximum of 50 members to work in a proper manner.


While we talk about a private company:

While we talk about a private company, there is a complete limit on the transferability of the shares and in a public company, the shares can be transferred from one holder to another without facing any kind of restrictions.

total restriction :

There is a total restriction on private companies from inviting the public for the subscription of their shares. And a public entity can freely call out people for the subscription of shares of the company without facing any issues.

Talking about the directors:

Talking about the directors, a private company is required to have a minimum number of 2 directors, while a public company is needed to have at least 3 directors to handle the public affairs without any problems and confusion.

consent by the directors:

A private company does not require consent by the directors, while there is a need for the directors of a public company to have a file of consent with the Registrar to work as a Director of the company.

public companies :

While there is a need for public companies to sign an undertaking to obtain the qualification shares of the company, a private company does not have to do this.

starting the business quickly:

A private company has the benefit of starting the business quickly after its incorporation, while a public company has to wait for a Certificate for the commencement of the business.

This must-have cleared your confusion by now so that you can decide the type of company you want to start to provide the services to the public. And if you are planning to go for Pvt. Limited registration, you just need all the documents ready with yourself and the process will be done in a less time period at minimal prices.

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