2. PRIVATE COMPANY
A private company means a company
which:
1. Restricts the right of members to transfer
its shares.
2. Has a minimum of 2 and a maximum of
50 members, excluding the present and
past employees;
3. Does not invite public to subscribe to its
share capital ; and
4 Must have a minimum paid up capital of
Rs. 100000 or such higher amount which
may be prescribed from time to time.
3. Privilages of pvt company
1. A private company can be formed by only two
members but public company needs 7 members.
2. No need to issue prospectus
3. Alotment can be done without minimum
subscription
4. Starts after getting certificate of incorparation
public company needs certificate of
commencement
5. Pvt company needs 2 directors ,public company
needs 3
6. Need not maintain index of members ,public
copmpany maintains it
7. No restriction to provide loans to directors no
permission from govt..but public company neds
that
