Q7- What are difference between Private and Public companies?
Difference Between Private And Public Companies.
1. The minimum number of shareholders is two
2. Maximum number of shareholders if fifty
3. It can not sell its shares to general public.
4. Commencement certificate from the registrar is not required for starting the business.
5. Annual or half yearly accounting statements are not required to be submitted with the registrar.
6. Issuance of prospectus to the public is not required
7. The auditor’s appointment is not compulsory for a private company
8. Private companies are not listed on the stock exchange
1. It must have at least seven numbers
2. It has no upper limit.
3. In most cases they sell shares to the general public
4. It must get a commencement certificate to start its business
5. Accounting statement must be submitted with the registrar
6. Prospectus or statement in lieu of prospectus must be issued for the general public is it wants to sell its shares on the open market.
7. It must appoint an auditor
8. They are allowed to become a member of the stock exchange facilating trading for their shares.