Private Limited/Public limited

What is a Private Limited Company?


A private company is a company which is owned by non-governmental organisations or a relatively small number of shareholders or members of a company. Usually, a private company does not offer or trade its shares to the general public on the stock exchanges, but rather the private stock of the company is owned and traded.

The Companies Act

The Companies Act, 2013 allows the incorporation for shareholders and members of various types of companies with varying levels of liability. In addition to choosing between the organizations (LLP, Private Limited Company, One Individual Company), the promoters can also select between the following three forms of Private Limited Company depending on the company requirements.


What is a Public Limited Company?

A Public Limited Company registration in India is the best suitable business structure for entrepreneurs who are planning for large-scale business operations. To register a Public Limited Company in India there should be a minimum of seven members and there is no limit on the maximum number of members/shareholders for starting a Public Limited Company.

A Public Limited Company in India enjoys all the privileges of a corporate entity together with the features of Limited Liability. A public limited company gets listed with the stock exchange to raise capital from the general public. Hence, the Public Limited Companies have to comply with multiple regulations of the government and start a Public Limited Company.