Private Limited Vs Public Limited
Private Limited vs Public Limited companies are both types of business entities, but they differ in key areas such as ownership, share transfer, regulatory requirements, and the ability to raise capital. Here concise comparison:
1 Ownership
Private companies are typically owned by a small group of individuals, often the founders, whereas Public companies are owned by a wide range of shareholders, including members of the public.
2 Share Trading
Private businesses do not list their shares on public stock markets, while public companies do.
3 Capital
Private firms usually earn capital from private investors or loans, whereas public companies raise funds by issuing stock to the public or selling debt.
4 Structure
Private firms keep all profits, obligations, and assets, whereas public limited companies are owned by shareholders and managed by a board of directors.
5 Share Transfer
Share transfers frequently have restrictions in private companies, but the number of shareholders is unlimited in public companies.