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Private Limited Company 
and 
Public Limited Company 
By:- Krishna Khataniar 
Roll no:- 21 
Year:- FY 
Division:- 1
Contents 
1) Definition as per The Companies Act, 
1956 
2) Differences 
3) Similarities 
4) Advantages 
5) Disadvantages ...
Definition as per 
The Companies Act, 1956 
A Private Limited Company is a company 
having a minimum paid-up capital of ₹...
Differences 
Private Co. Public Co. 
 Min. 2 persons 
required 
 Can not trade share on 
stock market 
 May operate dif...
Similarities 
 Shareholders 
Pvt. are owners 
Plc. 
 Limited Liability
Advantages of These Companies 
Private Co. Public Co. 
 Limited liability 
 Continuity of 
existence 
 More capital can...
Disadvantages of these companies 
Private Co. Public Co. 
¤ Shares can not be 
sold to general public 
¤ Restricted to tra...
Income Tax slab 
For Both Pvt. L.td 
Co. and Plc. Ltd. 
Co. 
30% Income tax 
Nil Surcharge 
3% Education Cess
Conclusion 
 If you have a small capital, then 
Private Co. is preferable or if you have 
a large capital and if you want...
References 
Information:- 
1. Wikipedia.com 
2. Dineshbakshi.com 
3. eHow.com 
4. http://company-registration.pro/ 
Photos...
Thank You…
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Comparing Private Limited Company and Public Limited Company

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This PPT includes definition, similarities-differences, advantages-disadvantages, etc.

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Comparing Private Limited Company and Public Limited Company

  1. 1. Private Limited Company and Public Limited Company By:- Krishna Khataniar Roll no:- 21 Year:- FY Division:- 1
  2. 2. Contents 1) Definition as per The Companies Act, 1956 2) Differences 3) Similarities 4) Advantages 5) Disadvantages 6) Income tax slab 7) Conclusion 8) References
  3. 3. Definition as per The Companies Act, 1956 A Private Limited Company is a company having a minimum paid-up capital of ₹1 lac. A Public Limited Company is a company having a minimum paid up capital of ₹5 lacs.
  4. 4. Differences Private Co. Public Co.  Min. 2 persons required  Can not trade share on stock market  May operate different businesses  AGM is not mandatory  Min. 7 persons required  Can trade share on stock market  Generally operates specific business  AGM is mandatory
  5. 5. Similarities  Shareholders Pvt. are owners Plc.  Limited Liability
  6. 6. Advantages of These Companies Private Co. Public Co.  Limited liability  Continuity of existence  More capital can be raised as max. members can be 50  Limited liability  Separate legal entity, continuity of business  Can raise large capital  Shares transferable
  7. 7. Disadvantages of these companies Private Co. Public Co. ¤ Shares can not be sold to general public ¤ Restricted to trade under name of an existing company ¤ Growth may be limited as max. shareholders are 50 ¤ Costly as there are a lot of formalities for commencing ¤ Face management problems ¤ May suffer from diseconomies of scale
  8. 8. Income Tax slab For Both Pvt. L.td Co. and Plc. Ltd. Co. 30% Income tax Nil Surcharge 3% Education Cess
  9. 9. Conclusion  If you have a small capital, then Private Co. is preferable or if you have a large capital and if you want to have a large share in the market, you can form a Public Co.
  10. 10. References Information:- 1. Wikipedia.com 2. Dineshbakshi.com 3. eHow.com 4. http://company-registration.pro/ Photos and Clip arts:- 1. Clker.com 2. Wikipedia.com
  11. 11. Thank You…

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