Question

Distinguish between the following.
Private Limited company and Public limited company

Answer 1

Basis of Difference	Private Limited Company	Public Limited Company
Number of members	Minimum: 2 Maximum: 50	Minimum: 7 Maximum: No limit
Number of directors	Minimum two directors are required.	Minimum three directors are required
Minimum paid-up capital	Rs 1 lakh	Rs 5 lakhs
Prospectus	Not compulsory to issue prospectus or a statement in lieu of prospectus	Compulsory to issue prospectus or a statement in lieu of prospectus (in case of absence of prospectus).
Minimum subscription	Minimum subscription is not required for a private company.	Minimum subscription is required for a public company.
Share certificates	It cannot issue share certificates.	It can issue share certificates.