Difference Between Ltd and PLC

PLC stands for Public Limited Company, whereas Ltd stands for Private Limited Company. There are several distinctions between the two.

The terminology itself demonstrates the distinction: one is public limited and the other is private limited.

Shares are used to raise capital in both the Public Limited Company and the Private Limited Company.

The distinction is that the PLC can trade its shares in a stock exchange, but the Ltd Company cannot.

In a Public Limited Company, shares may be bought and sold via the stock exchange.

There is no need to talk to the owners about selling and buying shares.

The shares of a Ltd company, on the other hand, are generally sold to close friends and others, and this may only be done if all of the shareholders agree.

In terms of shares, the government may own a majority of a Public Limited Company.

This doesn’t happen in an Ltd company because most of that shares will be owned by a family or private individuals.

Shares in a Public Limited Company may be freely transferred. This can’t be done with a Ltd company.

While an Ltd Company is more interested in profit from the business, a Public Limited Company is less concerned with profit since it is concerned with providing services and commodities to the public.

The Public Limited Company has a bigger impact on the public because the shares are open to the public.

The Ltd companies, on the other hand, have no public impact since they just do household business.

If anything goes wrong with a Public Limited Company, the public is severely impacted.

When comparing the establishment of the Ltd with the PLC, the PLC requires more legal documentation.

Summary of the Difference Between Ltd and PLC

  • PLC stands for Public Limited Company, whereas Ltd stands for Private Limited Company.
  • The PLC shares can be quoted in a stock exchange, but the Ltd Company cannot.
  • Shares in a PLC may be bought and sold in a stock exchange, and there is no need to consult with the owners when selling or buying shares. The shares of a Ltd company, on the other hand, are generally sold to close friends and others, and this may only be done if all of the shareholders agree.
  • Unlike a ltd company, which is focused with profit, a public limited company is concerned with providing services and goods to the public.
  • If something goes wrong with a Public Limited Company, the general public suffers greatly.

Recommended for you

Add a Comment

Your email address will not be published.

0 Shares