Private VS Public Companies
- Phatsites Webmaster
- Mar 13, 2021
- 1 min read
Difference between Private and Public companies
A private company requires a minimum of two board members while a public company requires seven.
A private company can have a maximum of 200 members while a public company can have any number of members.
There is a complete restriction on the transferability of shares in the private company and no restriction in a public company.
It prohibits an issue of the prospectus in a private company and is free in a public company.
A private company can commence business immediately after incorporation while a public company has to wait until they acquire the business certificate.
There is no obligation of a statutory meeting for a private company but it is obligatory for a public company.
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