1. Ownership and Shareholders

• A Public Limited Company must have a minimum of 7 shareholders and no limit on the maximum number.
  
• A Private Limited Company requires a minimum of 2 and a maximum of 200 shareholders.
  
• Public companies can offer shares to the general public.
  
• Private companies cannot invite the public to subscribe to shares.
  
• Shareholding in private companies is closely held among known individuals.
  

2. Share Transferability

• Shares of a Public Limited Company are freely transferable.
  
• Shares of a Private Limited Company are restricted from free transfer.
  
• Public companies are often listed on stock exchanges.
  
• Private companies remain unlisted.
  
• Restrictions protect the ownership structure of private companies.
  

3. Compliance and Regulatory Requirements

• Public companies must adhere to stricter compliance under the Companies Act and SEBI regulations.
  
• Private companies have comparatively relaxed regulatory obligations.
  
• Public companies must file more detailed disclosures and reports.
  
• Appointment of independent directors is mandatory for public companies.
  
• Compliance costs are higher for public companies.
  

4. Capital and Fundraising

• Public companies can raise funds from the general public through IPOs.
  
• Private companies rely on private funding sources like venture capital or loans.
  
• Public companies have better access to large-scale capital.
  
• Private companies have limitations in expanding their capital base.
  
• Public companies can issue securities in various forms to raise funds.
  

5. Management and Governance

• Public companies are required to have at least 3 directors.
  
• Private companies need a minimum of 2 directors.
  
• Public companies must conduct regular board and general meetings.
  
• Governance in public companies involves external oversight.
  
• Private companies have simpler governance structures with fewer external checks.