Private Limited Companies and Public Limited Companies

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Private Limited Companies and Public Limited Companies

Similarities

  • Owned by shareholders
  • Run by a board of directors
  • funded by retained profits
  • funded by shares

Differences

  • Public companies share their shares publically
  • Private companies do not share their shares publically
  • you can start a private limited company with only two members
  • Private Limited companies have Limited Liability
  • Public Limited companies have Unlimited Liability

Overall comparison

Public Limited companies share their profits publically and have unlimited Liability, whilst the Private limited Company is the opposite. However they are similar in terms of being owned by shareholders, funded by shares and retained profits.

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