What is the difference between Ltd and Pvt Ltd? - ProProfs Discuss
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What is the difference between Ltd and Pvt Ltd?

Asked by Jenske , Last updated: Jun 17, 2022

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3 Answers

T. Lopez

T. Lopez

Let's see how far my knowledge stretches

T. Lopez
T. Lopez, Biology student, Graduation, Detroit

Answered Dec 02, 2020

LTD and PVT LTD are two acronyms used to describe a company. LTD is for limited, which is used to describe a company that is a public limited company. These public companies have their shares listed as a part of the stock exchange, and they are a body that is a corporate entity.

PVT LTD is an acronym that stands for Private Limited. It is used to describe a company that is private. The shares of private companies are not listed as a part of the stock exchange. Promoters are the people who own the private companies. Public companies can be owned by anyone.

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G. Tanaka

G. Tanaka

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G. Tanaka
G. Tanaka, Dentist, MDS, Liverpool

Answered Jul 09, 2020

LTD refers to Public Limited Company while PVT LTD refers to a Private Limited Company. A company will be called private limited when the shares of the company will be handled by other people. This means that the shares will be in private hands.

When you say the public limited company, this means that the shares of the company will be handled by different promoters. Another difference between the two is the number of shareholders that the company will have.

The public limited company will usually be listed in the stock exchange with the stocks of the company traded by the group of promoters in public. The shares of the PVT LTD will not be traded at all.

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M. Klose

M. Klose

M. Klose
M. Klose, Content Writer, Oakland

Answered Jul 08, 2020

Ltd is an acronym for “limited,” which is normally use for Public Limited Company, and Pvt Ltd is an acronym for “Private limited,” which is normally used for a private company.

A private company does not display its shares to the public and is owned majorly by a group of promoters while the public company is open to everyone, the shares are open to everyone and are owned by the public. The minimum shareholder in the private company is, and the maximum is 50 while the minimum shareholder in the public limited company is seven and no limit to the maximum shareholders.

Shares are transferred easily from the public company to a private company. Share of the public company is listed in the stock exchange while the private company does not list their shares to the stock exchange. A public company is referred to as a corporate body, and a public company is a partnership firm.

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