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Question
Distinguish between the following.
Private Limited company and Public limited company
Solution
| Basis of Difference | Private Limited Company | Public Limited Company |
| Number of members | Minimum: 2 Maximum: 50 |
Minimum: 7 Maximum: No limit |
| Number of directors | Minimum two directors are required. |
Minimum three directors are required |
| Minimum paid-up capital |
Rs 1 lakh | Rs 5 lakhs |
| Prospectus | Not compulsory to issue prospectus or a statement in lieu of prospectus |
Compulsory to issue prospectus or a statement in lieu of prospectus (in case of absence of prospectus). |
| Minimum subscription | Minimum subscription is not required for a private company. |
Minimum subscription is required for a public company. |
| Share certificates | It cannot issue share certificates. |
It can issue share certificates. |
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