Difference Between Similar Terms and Objects

Difference Between Ltd and Pvt Ltd

Ltd vs Pvt Ltd

Ltd refers to Public Limited company and Pvt Ltd refers to private limited company.

A company is called private limited when all its shares are in private hands. Pvt Ltd Company is owned by a group of promoters. On the other hand, the shares in a Public Limited company are open to everyone. The company is not in the hands of a few promoters but the public owns it.

There is also difference in the number of shareholders in the two types of companies. In Private Limited companies, the minimum number of shareholders should be two and the maximum 50. On the other hand, the minimum number of shareholders in a Public Ltd Company is seven and there is no limit to the maximum number of shareholders.

When talking of shares, the shares can be freely transferred in a Public Limited Company whereas it is not possible in a Private Limited company. If ever the shares of a Pvt Ltd company have to be transferred, the consent of the shareholders must be sought. Pvt Ltd Company cannot make a public offer of its shares. On the contrary, Ltd companies can make a public offer through advertisements.

The shares of a Limited company are listed in the stock exchange whereas it is not in the case of Private Limited Company. This means that trading happens with a Ltd company in the stock exchange and nothing of that sort happens with a Pvt Ltd company.

A Private Limited company is a partnership firm where as Public Limited company is a full-fledged corporate body.

The Public Limited companies come with stringent rules and requirements. On the other hand, no such stringent rules or requirements are applicable for a private limited company.

Summary

1. A company is called as private limited when all its shares are in private hands while the shares in a Public Limited company are open to everyone.

2. Pvt Ltd Company is owned by a group of promoters. On the other hand, a Public Limited company is not in the hands of a few promoters but it is the public that owns it.

3. In Private Limited companies, the minimum number of shareholders should be two and the maximum 50. On the other hand, the minimum number of shareholders in a Public Ltd Company is seven and there is no limit to the maximum number of shareholders.

4. The shares of a Limited company are listed in the stock exchange whereas it is not in the case of Private Limited Company.


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3 Comments

  1. What about Multi National Companies.Because they are also Pvt Ltd.Can you tell me the difference.

  2. Informative website.. Got answers for my queries clearly.. Hats off you, who create and manages the site

  3. I am satisfied with this answer.

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