Question

Describe two differences between public and private corporations

Answer 1

	PRIVATE CORPORATION	PUBLIC CORPORATION
1) Minimum Paid up Capital	Minimum paid up capital is 1,00,000.	Minimum paid up capital is 5,00,000.
2) Minimum and Maximum members	Minimum - 2 and Maximum - 50	Minimum - 7 and maximum - no restriction
3) Issue of prospectus	It can't issue the prospectus.	It can issue the prospectus. It is free to invite public for subscription.
4) Commencement of Business	It can commence its business immediately after its incorporation.	It can't start the business until a certificate to commence its business is issued.
5) Name	It is mandatory to write word "pvt ltd" at the end of its name.	Only "ltd" word is written at the end of its name