What is the difference between a private limited company and a limited company?

A Private limited Company is a type of company that offers Limited Liability or legal Protection for its shareholder Private limited Company which can have a minimum of two members and can go as far as to two hundred members, it must have minimum of two directors and a maximum of fifteen directors.

There is a restriction in transfer of shares of a closely held company.  Also, the word ‘Private Limited’ is added after the name of the company.

Whereas, a Public limited Company is a company where the shares are widely held by public. Public limited Company shall have minimum of Seven Members, and there is no limit to any maximum number of members.

The shares of any Public limited company could be freely traded in the market. Here, the word ‘Limited’ is added after the name of the company.

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