What is difference between limited and PVT limited?

The Term ‘LTD’ and ‘PVT LTD’ generally used for denoting Public Limited Company and Private Limited Company respectively.

As the name suggests the Private Limited company is a Joint stock company which is held by the close group of members. The Share of the Private Limited Company is freely transferable however restricted to be transferred to public in general. Minimum 2 members are required in Pvt. Ltd. Company though; the number should not exceed 200.

Whereas the Public Limited Company is held by the public at large also its shares are freely transferable to anyone through stock exchange, if listed. There is no restriction for the maximum number of the members in the company although the minimum no. of members in public company should not fall below 7.

The public company can even invite and accept the deposits from the public, but the same liberty is not enjoyed by the private company. However, the private company can accept deposits from its members.

There is no minimum limit of paid up capital required for the incorporation of public or private limited company. However, the minimum authorised capital prescribed for public and private company is Rs. 500,000 and Rs. 100,000 respectively.

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