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What are the differences between private limited company and public limited company?

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Differences between private limited company and public limited company are;

  • Private limited company is formed by minimum of 2 shareholders while public limited company is formed by minimum of 7 shareholders.
  • Private limited company has maximum of 50 shareholders while public limited company has no maximum number of shareholders.
  • Private limited company commences immediately it receive certificate incorporation while public limited company waits for certificate of trading.
  • Private limited company, shares are not freely transferable while public limited company shares are freely transferable.
  • Private limited company is not a must for books of account to be audited while public limited company, books of account are audited annually.
  • Private limited company cannot draw prospectus while public limited company must prepare a prospectus.

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