What is difference between
Pvt. Ltd. company and
Ltd. Company
NOTE: This question is specific to Indian policy
2006-11-14 23:20:20 · 6 answers · asked by Rishabh Kapoor 1 in Business & Finance ➔ Other - Business & Finance
Private Limited is a fully owned company by group of promoters. All shares of the company are in private hands. In Limited Company, which is in fact Public Limited, who's owners are Public, and shares are open to to anyone to buy and sell and keep it. Maximum share holder runs the company, as per Company Law.
2006-11-14 23:44:31 · answer #1 · answered by Anonymous · 7⤊ 1⤋
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RE:
What is difference between Pvt. Ltd. company and Ltd. Company?
What is difference between
Pvt. Ltd. company and
Ltd. Company
NOTE: This question is specific to Indian policy
2015-08-16 20:31:31 · answer #2 · answered by Anonymous · 0⤊ 0⤋
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.
2006-11-14 23:44:52 · answer #3 · answered by Rangeela 1 · 5⤊ 2⤋
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pvt ltd company is owned by a group of people which maximum number is 50 and minimum number is 2 but limited companies can start with minimum 7 members as promotor and no limit for maximum number . secondly ltd company can list their share to SEBI and trade it in exchanges but pvt ltd can not do the same.
2016-04-02 02:51:11 · answer #4 · answered by Nikki 4 · 0⤊ 0⤋
Private Ltd Companies:
The share holders' requirements
are- a minimum of 3.
The liabilities are restricted to
the share holders' personal
wealth and stakes, proportion-
ately.
Any two share holders/directors,
in a 3 member organisation, can
pass any resolution for the
company.
There are no qualifications, for app-
ointment of the directors.
No working experience is required.
There are fewer legal obligations
to be fulfilled in the Company Law
Board.
The companies are to submit the
annual profit and loss account to
the Registrar of Companies.
Any appointment/ resignation is
to be informed to the ROC.
In a Public Ltd. company, there has
to be a minimum of 7 share holders,
to invest for a minimum of one share.
The liabilities of the share holders
are prime.
Regular Board Meetings are to be called.
Annual General Body Meetings are to
be held every year.
Decisions about the companies activities
are to be ratified by the share holders, in
the AGMs.
The majority of the Share holders,
through the directors, can pass
any resolution for the betterment of
the company.
For passing any special resolution for the
the company, board members would require
at least 76% of votes of the share
holders to pass the same.
Such resolutions, if passed, can be very
serious in nature.
All such resolutions are to be sent to the
ROC.
There are requirements of maintaining
Minutes' Book of the company.
The share holders cannot be denied to
inspect the minutes' book.
The Board of Directors are to be qualified
to run a company.
Although there may be several directors in
such a company, but the financial implications
involves the entire share holders, irrespective
of each directors' stake.
Any aggrieved minority share holder (a group), having
more than 5%shares, if he feels, that the
company is doing something wrong, against
the interests of them/him can file a petition
in the CLB u/s 398-399 of the comanys'
act 1956, for mismanagement and winding
up of the company.
The obligations are too many to protect
the interests of the share holders, having
5% + shares.
As per the new laws, there has to be a
company secretary in a public ltd co.
These companies are elligible to float
IPO, if there are profits for the last
three years, for any expansion projects,
subject to the approval of SEBI.
I think this information is sufficient for
you.
2006-11-15 00:25:32 · answer #5 · answered by pianist 5 · 4⤊ 0⤋
What Is Private Limited Company
2016-10-02 00:42:22 · answer #6 · answered by ? 4 · 0⤊ 0⤋
Private Limited co. operate by any family pr friends or partners upto limited capital and Public Limited co. has no limit and operate by elcted board members by share holders
2006-11-14 23:44:08 · answer #7 · answered by Sonu Raja 3 · 1⤊ 0⤋