Key differences between Public Limited Companies (Ltd.) and Private Limited Companies (Pvt. Ltd.)
| Feature | Public Limited Company (Ltd.) | Private Limited Company (Pvt. Ltd.) |
| Ownership | Shares are freely transferable and can be listed on stock exchanges. | Shares are not freely transferable; limited to private investors. |
| Minimum Number of Members | Requires at least 7 shareholders. | Requires at least 2 shareholders. |
| Maximum Number of Members | No limit on the number of shareholders. | Limited to 200 shareholders. |
| Minimum Directors | Must have at least 3 directors. | Must have at least 2 directors. |
| Capital Requirement | No minimum capital requirement (but must be sufficient for business needs). | No minimum capital requirement. |
| Stock Exchange Listing | Can be listed on stock exchanges (NSE, BSE) and raise capital from the public. | Cannot be listed on stock exchanges; funding is private. |
| Regulatory Compliance | More stringent, requires regular disclosure and compliance with SEBI regulations (if listed). | Comparatively fewer regulations and compliance requirements. |
| Public Fundraising | Can issue shares to the general public through IPOs (Initial Public Offerings). | Cannot issue shares to the public; funding is from private investors. |
| Audit & Reporting | Mandatory audits and public disclosures, including financial statements. | Audit is mandatory, but financial statements are not publicly disclosed. |
| Control & Decision Making | Decision-making is influenced by public shareholders. | Decision-making remains with the private owners, ensuring better control. |
Conclusion
A Public Ltd. company is best for businesses that want to raise money from the public and grow big, but it comes with more rules and regulations. A Private Ltd. company is better for those who want more control, fewer legal requirements, and private investments. The choice depends on how much flexibility and funding a business needs.
Suggested Read :
Checklist for Pvt Ltd Company Compliance
Enterprises vs Pvt Ltd Companies
June 19, 2025 By Team Ebizfiling
How to Avoid International Tax for Indian Startups? Introduction Expanding across borders brings new customers, but also new tax challenges. Many Indian startups overlook hidden tax rules in foreign markets. Understanding international tax traps Indian startups must avoid can save […]
June 18, 2025 By Team Ebizfiling
Form DPT-3 Explained: Deadline, Applicability & Penalties Introduction Form DPT-3 is a yearly form that companies in India must submit to the government. It gives details about money the company has received, like loans or advances that are not considered […]
May 24, 2025 By Team Ebizfiling
LLP vs Private Limited Company: Best Choice for Startups? Introduction Starting a business comes with many important decisions, and choosing the right business structure is one of them. Two of the most popular options for start-ups in India are Limited […]