Distinguish between Private Company and Public Company

This table outlines the key differences between Private Companies and Public Companies based on various parameters such as naming conventions, capital requirements, membership, share transferability, and regulatory obligations.

Sr.	Content	Private Company	Public Company
1	Company's Name	Company should contain words "Private Limited" at the end of its name.	Company should contain words "Limited" at the end of its name.
2	Paid up Capital	A company must have a Minimum Paid up capital of Rs. 1 Lakh	Whereas a public company must have Minimum Paid up capital of Rs. 5 Lakh
3	Minimum Number of Member	Minimum Number of Member required to form a private company is 2	Whereas a public company required at least 7 member.
4	Maximum Number of Member	Maximum Number of Member required in a private company is restricted up to 50.	Whereas there is no restriction of maximum number of member in a public company.
5	No. of Directors	Minimum No. of Directors present should be 2	Minimum No. of Directors present should be 3
6	Transferability of shares	There is completely restriction on transferability of the shares of a private company	Whereas there is no restriction on the transferability of the shares of a public company
7	Public Deposit	Private company can accept deposits from Members of Company, Directors and their relatives.    A private company is prohibited from inviting the public for subscription of its shares.   Private Company cannot invite public to subscribe for shares of debentures.	Public company can accept deposits from investors and company may have promotes of their shares.   A private company is free to inviting the public for subscription of its shares.   Private Company can invite public to subscribe for shares of debentures.
8	Consent of Directors	There is no need to give the consent by the directors of a private company	Whereas the directors of a public company must have file with the registrar a consent to act as director of a company
9	Prospectus	Statement in lieu of prospectus not required even for first issue.	Statement in lieu of prospectus Or Prospectus required.
10	Certificate to Commence business	A private company can commence its business immediately after receiving the certificate of incorporation.	Public company require both certificate - Certificate of incorporation and -Certificate to commencement of Business
11	Share warrants	A private company cannot issue share warrants against its fully paid shares	Whereas public company can issue share warrants against its fully paid up shares.
12	Right shares	A private company cannot issue right shares	A public company can issue right shares.
13	Minimum Subscription	A private company does not compile provision for minimum subscription.	A public company who wants to issue the new shares, requires to follow provision for minimum subscription. a public company need to raise 90% of issue amount within 60 days.
14	Statutory meeting	A private company has no obligation to call the statutory meetings of the member.	A public company must call the statutory meetings of the member within six month from the date of incorporation of business..
16	Quorum	The quorum consist 2 Member in case of private company.	The quorum consist 5 Member in case of public company.
17	Managerial Remuneration	No restriction in case if private company	Total Managerial Remuneration in the case of private company cannot excess 11% of the net profit.
18	Privilege	A private company enjoys some special privilege.	A private company cannot enjoys some special privilege.