what is a difference between private linited company and public limited company ?

Answer 1

In United Kingdom and most countries which follow British common laws traditions, Private limited company are company with less than 50 shareholders with restrictions in transfer of shares. Those companies with more than 50 shareholders with or without restriction of transfer of shares are public companies. Those companies with less than 50 shareholders but without the restriction of transfer of shares are also public companies.

It is a mis-conception that public company must be big. No. There is a lot private company which is bigger than a public company in terms of turnover, number of employees and earnings.

The different between a private and public company is the number of shareholders and the restrictions in the transfer of shares. A public company does not equal to a listed company. However, a listed company MUST BE A PUBLIC COMPANY as the shareholder should be more than 50 and the shares should be freely transferred.

The statutory obligations (e.g. filing, disclosure of financial information, rules governing broad of directors and shareholders meeting, transfer of shares among shareholders) are different between Private and Public companies.

You can go to read a text book on company law and you will get the answer in depth.

Answer 2

First and most basic - A private limited company adds Ltd. at the end of it's name (e.g The Ligiersaredevilspawn Company Ltd.) A public limited company adds plc at the end of it's name ( e.g The ligiersaredevilspawn Company Plc.). A public limited company is much larger than a private limited company. A private limited company has the right to issue/sell shares and take on debentures, it cannot however sell shares on the open market (i.e the stock market) a plc can. As such the difference should be construed as Private limited companies are not listed on the stock exchange whereas public limited companies are. There are many other rules relating to plc's operations which apply to them that do not apply to limited companies. These are mainly down to disclosure of accounts and the like and are in place to protect the public.

Answer 3

Private limited are usually small companies who aren't listed on the stock market (usually family run firms). Business determines its own objectives and has £50000 or below of share capital.

A public limited company on the other hand has shareholders, floats on the stock exchange and has limited liability. Big disadvantage to owners is they have limited control over the business or the fluctuations in share price! examples of a plc would be Virgin etc

Answer 4

private ltd company's are small business public ones have been floated on the stoke market(i think)

Answer 5

In which country?