Private limited company vs public limited company?

Private Limited (Plc) Companies A private limited company is owned privately by a small group of people such as a family. They are not allowed to offer shares (in the company) to the general public and can operate through just one director. A private limited company can not trade its shares on the stock market Although private limited companies are usually small in size, they are expensive to set up and have to produce proper accounts.

Furthermore unlike a sole trader, private limited companies have to pay auditors, hold meetings as stipulated in the Companies Act and share profits between all of the shareholders Public Limited companies (Ltd) A public limited company is able to trade on the stock market but in order to gain plc status the company must achieve the following Minimum share capital of £50000 Minimum of two directors It's name must contain "plc" or "private limited company Secure a trading certificate from the Companies House The ability to offer shares on the stock market makes it easier to raise capital; however the accounts of the company are in the public domain. All financial records, including the director's reports must be audited and available to the Registrar of Companies at the Companies House and to all who want to scrutinise them. Furthermore the company is vulnerable to take-overs as rivals have the option to purchase shares.

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