State the important privileges available to a private company.

The important privileges available to a private company are as follows:

i. A private company can be formed by two members whereas for a public company it requires at least seven members to form.

ii. There is no minimum subscription for the allotment of the shares.

iii. After receiving the certificates of incorporation a private company can start the business. But a public company cannot start its business without receiving the certificate of commencement.

iv. A private company is not required to keep an index of members while the same is necessary in the case of a public company.

v. For the sanction of loans, a public company required permission to grant whereas there is no such restriction in private company.