A Public Limited Company is a publicly known company. This is a limited company and the shares can be traded with the public. There should be at least 3 directors in this type of company.
A private limited company is also known as the LTD Company. In a private LTD company the shares are limited with the number of the shareholders. The shareholders cannot trade the shares publicly here without the consent of the partners.
Benefits of a Private Limited Company
The Shareholders will have the liability according to the shares that the shareholders will invest. The best part is that if the company someday gets shut, the shareholders will not take the risk of losing their assets.
There is no burden of take overs as the shareholders in a Private Limited Company as shareholders cannot trade the shares without the consent of the partners.
Private companies once incorporated remains forever even after the owner’s demise.
In a Private Limited Company, no one is obliged to disclose the finances to the public.
It is mandatory to held meetings like the General Meetings in Public Limited but in Private Limited Company, there is no such need.
Private companies enjoy less legal restrictions.