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why companies put ltd and pvt ltd,what is the difference?
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Answer Posted / jayasree
Accoring to company accounts public comapny means :
1. They can invite shareholdes to investe in that company,
2. Min number required to start public comp is 7 members,
3. Tansferibility of securities,
4. Distribuition of profits/Losses to the share holders,
5. At the end of the company name it uses LTD (Limited
company).
Where as Private company:
1. They can be started his buisness with 2 members,
2. Company uses pvt LTD at the end.
3. Owners of that comapny should bring the capital by way
of lon and his own property, i.e owner does not have right
to annouse IPO.
4. Owners are enjoy the profit and losses of the business.
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