Following are the differences between a public company and a private company:
| BASIS OF DIFFERENCE | PUBLIC COMPANY | PRIVATE COMPANY |
| NUMBER OF MEMBERS | Has a minimum of 7 members and no limit on maximum members | Has a minimum of 2 and a maximum of 200 members, excluding the present and past employees |
| RESTRICTION ON TRANSFER OF SECURITIES | Has no restriction on transfer of securities | Restricts the right of members to transfer its shares |
| INVITING PUBLIC | Is not prohibited from inviting the public to subscribe to its securities | Does not invite public to subscribe to its securities |
| Minimum No. of Directors | Two | Three |
| Index of Members | Compulsory | Not Compulsory |
