Distinguishing Between Public and Private Companies in India

Although public and private companies share some similarities, they possess significant legal distinctions. A Private Limited Company is collectively owned and operated by its members, whereas a Public Limited Company, as governed by the Companies Act 2013, has limited liability and extends its stock offerings to the public through mechanisms like an Initial Public Offering (IPO) or stock market transactions.

A comprehensive breakdown comparing Public and Private companies in India is presented in the following table:

Aspects Public Limited Company Private Limited Company
Section 2(71) of Companies Act, 2013 2(68) of Companies Act, 2013
Definition A company not qualifying as private, having a minimum paid-up share capital, and holding subsidiary company status A company with specified minimum paid-up share capital, restricting share transfers, limiting members, and prohibiting public invitations
Applicable Law Companies Act, 2013 Companies Act, 2013
Liability Limited or Unlimited Limited or Unlimited
Number of Members Minimum 7, Maximum unlimited Minimum 2, Maximum 200
Directors At least 3, Maximum 15 (expandable) At least 2, Maximum 15 (expandable)
Statutory Audit Mandatory Mandatory
Board Meetings At least 4 per year, limited 120-day gap At least 4 per year, limited 120-day gap
Nominee Not applicable Not applicable
Minimum Share Capital Not mandatory Not mandatory
Annual Compliance Submission of financials to the Registrar Submission of financials to the Registrar
Suffix Public Limited/Limited Pvt. Ltd.
Taxation Flat rate of 30% Flat rate of 26%
Annual Compliance Filing of forms for each financial year Filing of forms for each financial year
Investment by Foreign Nationals In accordance with FDI guidelines In accordance with FDI guidelines
Fundraising Allows public issues Restricted to specific methods
Business Activities Permits any business Restricts certain businesses disallowing private investment
Conversion Voluntary conversion permitted Voluntary conversion permitted
Control and Ownership Controlled by its members Controlled by its members
Transferability Easily transferable shares Restricted share transfers

Don't forget to share this article :-

Stay Updated With Our Blogs!

Explore more of our blogs to have better clarity and understanding
of the latest corporate & business updates.

Why People Choose Our Services ?

Free Legal Advice

We provide free of cost consultation and legal advice to our clients.

Tech Driven Platform

All our services are online no need you to travel from your place to get our services.

Grow your business

Experts Team

We are a team of more than 15+ professionals with 11 years of experience.

Transparent pricing

There are no hidden & extra charges* other than the quote/invoice we provide.

100 % Client Satisfaction

We aim that all our customers are fully satisfied with our services.

On-Time Delivery

We value your time and we promise all our services are delivered on time.

Why Trust legal Suvidha?

People Who loved our services and what they feel.

In this Journey of the past 10+ years, we had gained the trust of many startups, businesses, and professionals in India and stand with a 4.9/5 rating in google reviews.We register business online and save time & paperwork.

Reno K Subramaniam
Reno K Subramaniam
I have recently registered a Private Limited firm and was looking for a CA to take care of the filings, Startup India Certificate, and other formalities. I have received emails from legal Suvidha and a few others. I tried talking to them all. But, Mr. Mayank from Legal Suvidha was very impressive and was patient enough, prompt to answer all the queries. He has a very professional team and after the initial formalities, I started interacting with the team. It's not even 2 weeks but I really feel overwhelmed by their service and professionalism. I received my startup India certificate yesterday and my filings have been done promptly. The team at legal suvidha Ms. Nidhi, Ms. Priyanka, Ms. Koshika, and Ms. Saloni all show the same professionalism and are readily available to take care of the official filings and stuff. Overall a great experience till now and looking forward to a great journey!
pankaj tiwari
pankaj tiwari
Legal suvidha is a team of genuine and experienced professionals who give you best services according to your profile
Raman Krishnan
Raman Krishnan
Saloni from legalsuvidha has done a excellent job for filling and geting certificate of DPIIT. Thanks to legalsuvidha.
Prakaash Hari
Prakaash Hari
Team Legal Suvidha offers a brilliant service. There communication is quite clear and they execute the job meticulously. We are a startup private limited company and their advice is so critical in making my decision. Well done team. Keep it up. Prakaash Hari, Director, ipixela.
Priyanka Rudra
Priyanka Rudra
Dedicated team and fast response
Dr. Vishal Ghag
Dr. Vishal Ghag
Been using their services since 3 years now and I am absolutely happy with Legal Suvidha. They have been supportive, understanding and highly skilled at helping me with my business needs.

Our Partnerships & Collaborations

Contact us and grow your business

Legal Suvidha App

Now all Professional Services in a Single Click !

Now get all the services required for your business in a single app.

Subscribe to our newsletter & grow your business

Subscribe To Our Newsletter .

Sign up to receive email updates on new product announcements, special promotions, sales & more.