What is the difference between Ltd and PLC? - ProProfs Discuss
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What is the difference between Ltd and PLC?

Asked by C. Gray, Last updated: Jun 04, 2020

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Barry Mclean

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Barry Mclean, Sales Manager, MBA, Ewa

Answered May 01, 2020

There are so many differences between Ltd or Public Limited Company and PLC or Private Limited Company. Even the full form of the two terminologies shows there are some differences between the two. One of the things that are common to the two is that both sources for funds through shares.

In a public limited company, you don't need to meet with the owners of the shares before they can be sold. In contrast, you will need to meet with the shareholders in a private limited company before shares can be sold or bought. Most times, shares are sold to close friends unless all the shareholders agree that they should be sold to others.

In a public limited company, the bulk of shares are usually owned by the government, whereas shares belong to private individuals in a private limited company. One of the major objectives of a private limited company is to make more profits, whereas a public limited company is most concerned with the various services it is offering to the general public.

 

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