There are numerous legal and practical differences between a Private Limited Co and A Unlisted Public Company but one major difference is that of restriction on transfer ability of shares. It's the biggest advantage of an Unlisted Co.
Unlisted Public company is more less same as Public Listed company difference being the company listed on a Stock exchange.
Why companies go for incorporating themselves as Unlisted Public Co., is that the Private limited Co., by its nature shall not transfer its shares to public and is restricted only among it's members.
In layman terms the Unlisted company may be defined as a privately held companyor close corporation is a business company owned either by non-governmental organizations or by a relatively small number of shareholders or company members which does not offer or trade its company stock (shares) to the general public on the stock market exchanges, but rather the company's stock is offered, owned and traded or exchanged privately. More ambiguous terms for a privately held company are unquoted company and unlisted company.
By law a Private Ltd co., enjoys many privileges and exemptions in areas where a Unlisted Public ltd. co is bound by several obligations, restrictions and legal compliances. but it is these legal compliances which makes a lender very comfortable to lend money to a Public ltd co., but not a Private ltd co.,
A publicly unlisted company is a company that can have an unlimited number of shareholders to raise capital for any commercial venture. Companies which are not listed publicly are more likely to engage in profit maximising behavior as their share capital structure makes it very easy to give its members financial returns. Unlisted companies are usually too small to qualify for a stock exchange listing, and do not usually advertise for investors
Unlisted Public company is more less same as Public Listed company difference being the company listed on a Stock exchange.
Why companies go for incorporating themselves as Unlisted Public Co., is that the Private limited Co., by its nature shall not transfer its shares to public and is restricted only among it's members.
In layman terms the Unlisted company may be defined as a privately held companyor close corporation is a business company owned either by non-governmental organizations or by a relatively small number of shareholders or company members which does not offer or trade its company stock (shares) to the general public on the stock market exchanges, but rather the company's stock is offered, owned and traded or exchanged privately. More ambiguous terms for a privately held company are unquoted company and unlisted company.
By law a Private Ltd co., enjoys many privileges and exemptions in areas where a Unlisted Public ltd. co is bound by several obligations, restrictions and legal compliances. but it is these legal compliances which makes a lender very comfortable to lend money to a Public ltd co., but not a Private ltd co.,
A publicly unlisted company is a company that can have an unlimited number of shareholders to raise capital for any commercial venture. Companies which are not listed publicly are more likely to engage in profit maximising behavior as their share capital structure makes it very easy to give its members financial returns. Unlisted companies are usually too small to qualify for a stock exchange listing, and do not usually advertise for investors
First It should be clear that mostly there are only two type of Companies Public Limited & Private Limited. ( other are One Person Co. , Company with or without Guarantee, with or without shares etc.)
Let me explain some points:
- Listed Company : A Public Limited Company whose any Securities (Equity or Debt=Shares or Debentures ) Listed in any Stock Exchange like. Bombay Stock Exchange (BSE), National Stock Exchange (NSE) etc. Note: Actually Securities (shares or Debentures) are listed on Stock Exchange not Company.
- Public Limited Company: which fulfill some condition : member limit Min. 7 to Unlimited, Shares are transferable without any restriction.. Note: When Public Limited Co. shares or Debentures listed in Stock Exchange, it automatically become Listed Public Co.
- Private Limited Company: Which have Members (Min. 2 or Max. 200) & Restriction in transfer of shares. As the Member limited is only 200 & restriction in transferability of shares, It is like impossible to get shares listed in Stock Exchange by Pvt. Co.
So, the Final Conclusion are following:
Listed Public Co. = Public Limited Company + Securities listed in Stock Exchange
All other Company are Automatically Unlisted Company, Therefore Using Word“Unlisted” is not generally required.
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