Our Recommendations :-
Follow CA Final FB Page

incorporation, private limited and joint stock company

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 usha asked about 3 years ago

What is the difference between incorporation, private limited and joint stock company?

    0       0 Answer Now Comment Report
2 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 CA Sandeep Bohra answered almost 3 years ago

Dear friend, --Joint stock company have the general public as shareholders. When companies require large capital, they invite public participation - to be owners/shareholders, who hold a fractional ownership in the company. These shares are then traded on the stock exchange and traded daily. --The private limited company however has restricted ownership, and generally the promoters and their friends and associates may be owners/shareholders. The shares of a private limited company cannot be traded on the stock exchange. Companies requiring a smaller capital base may use this company structure to raise the necessary capital, without the required disclosure norms for publishing annual accounts, listing requirement etc. as required by the joint stock companies. --The rationale for a private limited company as against a partnership is that in case of bankruptcy or default etc, the promoters of a private limited are not personally liable (The liability of the company is limited to the share capital) --Basically a joint stock company is the one where different stock can be owned by public. Every shareholder can hold a particular proportion of shares. --The share holding proportion determines the ownership of shareholders. There is no restriction for a joint stock company to invite public for subscription of shares. Thus a joint stock company can raise more capital.Whereas a private limited is the one that cannot invite public for its subscription. Thus it raises its capital from the directors and the promoters

    0       0 Comment Report
Important Note – Preparing for CA Final?
CAKART provides Indias top faculty each subject video classes and lectures – online & in Pen Drive/ DVD – at very cost effective rates. Get video classes from CAKART.in. Quality is much better than local tuition, so results are much better.
Watch Sample Video Now by clicking on the link(s) below – 
For any questions Request A Call Back  
Open uri20170510 32134 1tylh22?1494421766 Tanu Satyashi answered about 3 years ago

Dear usha Kindly be a little clear in the question? are asking regarding the difference regarding differences in the incorporation procedure of pvt co. & a joint stock company??

    0       1 Comment Report
Get Notifications
Videos
Books
Notes
Loading
SIGN UP
Watch best faculty demo video classes

These top faculty video lectures will
help u prepare like nothing else can.