Private Limited Company


	Private Limited Company
	Advantages Limited liability and the business has a separate legal identity Access to more capital than unincorporated businesses Control of the business cannot be lost to outside investors as shares can only be sold with all shareholders approval Business continuity even if one owner dies More private than a PLC as it is only required to divulge a limited amount of financial information More flexible than a PLC	Disadvantages Profits distributed among a much larger number of shareholders Shares are less attractive, as they cannot be traded on the stock exchange and hence could be difficult to sell Less flexible if expansion needs finance which is more difficult to raise than a PLC There are more legal formalities when setting up i.e. memorandum and Articles of Association
	Evaluation

Limited liability and the business has a separate legal identity
Access to more capital than unincorporated businesses
Control of the business cannot be lost to outside investors as shares can only be sold with all shareholders approval
Business continuity even if one owner dies
More private than a PLC as it is only required to divulge a limited amount of financial information
More flexible than a PLC

Profits distributed among a much larger number of shareholders
Shares are less attractive, as they cannot be traded on the stock exchange and hence could be difficult to sell
Less flexible if expansion needs finance which is more difficult to raise than a PLC
There are more legal formalities when setting up i.e. memorandum and Articles of Association

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