Pakistan study notes for Matric, Intermediate, B.A, B.COM BSC, M.A, BCS. Free Pakistani Urdu educational school, colleges and University notes.

DIFFERENCES BETWEEN PRIVATE AND PUBLIC COMPANY

DIFFERENCES BETWEEN PRIVATE AND PUBLIC COMPANY

PRIVATE COMPANY PUBLIC COMPANY
Number of shareholders

1. The minimum number of shareholders is two.

Number of shareholders

It must have at least seven members.

2. Maximum number is fifty. No upper limit of the shareholders.
Marketability

3. It can not sell its shares to general public.

Marketability

In most cases they sell shares to the general public.

Documents

4. Commencement certificate from the registrar is not required for starting the business.

Documents

It must get a commencement certificate to start its business.

Reports

5. Annual or half-yearly accounting statements are not required to be submitted with the registrar.

Reports

Accounting statements must be submitted with the registrar.

6. Prospectus

Issuance of prospectus to the public is not required.

Prospectus

Prospectus or a statement in lieu of prospectus must be issued for the general public if it wants to sell its shares on the open market.

7. Auditors

The auditor’s appointment is not compulsory for a private company with the capital less than three million rupees.

Auditors

It must appoint an auditor.

 

8. Stock exchange

Private companies are not listed on the stock exchange.

Stock exchange

They are allowed to become a member of the stock exchange facilitating trading for their shares.

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