There are 2 main types of limited company: Public limited company (Plc) and Private limited (Ltd)
Public limited company:
A company may become a public limited company if it has:
- Issues share capital over £50,000
- At least 2 shareholders and at least 2 directors
A public limited company may raise capital from the public on the stock exchange but they don't have to issue shares on the stock market.
Private limited company:
Many private limited companies are small often in family ownership. A Ltd has:
- no minimum requirement for issued share capital
- at least one shareholder and at least one director who may be the same shareholder.
The shares are not traded publicly. The individuals can be chosen to be a shareholder
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