Difference between LTD and Pvt LTD companies with table. An association or legal entity formed by a group of people to start and manage a business is called a Company. A company is organized by the corporate laws of its jurisdiction. A company can be in partnership or property according to the structure in which they are defined or it can be said that the business line of a company depends on its structure. ltd and pvt ltd company
The companies can be a public company or a private company. A public company is one in which the powers are not limited to some people and resides with the public. A private company is one in which power is with a group of people and only they can make decisions for the company. A public company is called Ltd and a private company is called Pvt Ltd.
The difference between Ltd and Pvt Ltd company is that in a limited or limited company the shares of the company are open to all who are the public owner of the company, while in the private limited company or Pvt Ltd the shares of the company they are in private hands, it is regulated by the private sector. promoters or a group of promoters. ltd and pvt ltd company
Comparison table
Comparison parameter
| Shareholders | In a corporation, the shares are owned by the public and are open to all. | In a limited liability company, the shares belong to the private promoters. |
| Minimum number of shareholders | A Ltd companys requires at least seven shareholders in the company. | A Pvt Ltd companys requires at least two shareholders. |
| Maximum number of shareholders | A public limited companys does not have an upper limit for the number of shareholders. | A Pvt Ltd companys can have a maximum of 50 shareholders. |
| Transfer of shares | The transfer of shares in a public limited companys is carried out through the stock market. | The shares of a limited liability companys are generally limited to a group of people and are therefore transferred with the approval of all shareholders. |
What is LTD Company?
Ltd. or Limited refers to a corporation which is a company in which the shares of the company are held by the public. A Limited Company is open to all who want to buy shares in it. You have to be transparent in your transactions and records and other activities. Under the Companies Act, a public company can only write Ltd after its company name and not public Ltd..
In a public company Ltd, the minimum number of shareholders must be seven, while there is no limit to the maximum number of shareholders. The minimum capital requirement to start a public limited company is 500,000. A public company must have at least three directors. ltd and pvt ltd company
A corporation needs the approval of the business registrar to start any business. You have to be transparent in your transactions and records and other activities. A public company needs to issue a public statement to show its transactions and decisions. ltd and pvt ltd company
A public company is listed on the stock exchange, therefore the transfer of shares is done by buying and selling on the stock market. A public company has the right to issue more shares to existing shareholders after approval.
What is Pvt LTD Company?
Pvt Ltd or Private Limited company is a company in which the shares of the company are held by a group of people. A limited liability company is not open to the public. Under the Companies Act, a limited liability company is subject to some exemptions and privileges. ltd and pvt ltd company
In a limited liability company, the minimum number of shareholders is two, while the maximum number of shareholders is 50. The minimum capital required to start a limited liability company is 100,000. A limited liability company must have at least two directors.
To conduct any business, a limited liability company does not require approval from government authorities. The business owner is free to make business related decisions. A limited liability company is neither obligated nor obligated to issue statements to show its transactions and activities.
A limited liability company is not necessarily listed on the stock market, especially small businesses cannot opt for the stock market. The transfer of company shares is made with the approval of the current shareholders. Generally, these actions reside within a group of individuals or in a family.
Main differences
- Ltd. represents a limited company, while Pvt ltd means a private limited company.
- In a ltd company, the shares of the company are held by the public, while the shares of a Pvt ltd are held by private promoters or a group of promoters.
- The shares of a Ltd company are open to the public, while the shares of a Pvt ltd company are not open to the public.
- The minimum number of shareholders in a Ltd company is seven, while in a Pvts Ltd company it is two.
- There is no maximum number of shareholders in a Ltd company, while Pvts Ltd companies have a limit of 50.
- The shares of a Ltd company are listed on the stock exchange when this is not the case of a Pvts ltd company.
- The transfer of shares in a Ltd company is done by trading on the stock exchange, while in a Pvts Ltds company, the shares are transferred with the approval of all shareholders.
Final Thought
Companies have certain limitations whether it is a corporation or a private corporation. These companies are made for a specific purpose and need to fulfill their purposes with the rules and regulations established by the government of a country. However, private companies receive some exemptions and privileges under the Companies Law for the social works they carry out.
