What is the difference between public ltd and pvt ltd?

Answer 1

There are lots of differences. The major factor is number of shareholders and shareholding pattern. In Pvt. Ltd. Company the share holders comprise of close group of friends and relatives. A Pvt. Ltd. company can not make an offer for public to subscribe its shares. Where as a Ltd. Company can given an advertisement and invite general public to subscribe for its 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 shareholders are required. A share holder of a Public Ltd. company can transfer his shares freely at the stock exchange where the shares 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 difference. For more details you need to refer The Indian Companies Act 1956

Answer 2

Difference between proprietorship and ltd is taxation and liability. proprietorship means that you, as the sole proprietor, are liable for everything, meaning if the business gets sued, you get sued. so you could lose everything you and the business own. also, as a proprietorship, the business taxation falls under your own personal income tax.

as a limited firm, what you do is create a separate entity for the business. meaning that the business purchases its own equipment, can enter into its own contracts, and if it gets sued, then the owner is (for the most part) not touched on the personal level. the business may go bankrupt without the person having to worry about losing any personal possessions such as a house. Also, a ltd firm gets taxed on its own under corporate taxes, which tend to be a lot more favorable most of the time.

Answer 3

Shares in public limited companies are traded on a stock market, shares in a private limited company can only be sold privately. There are also many other differences between the two.

Answer 4

India pvt ltd is used by some Indian companies to emphasise on their Indian origin.