Difference Between Ltd and PLC
Ltd vs PLC
PLC means Public Limited Company and Ltd means Private Limited Company. One can come across many differences between the two. The terminology itself shows that the two are different ‘“ one is public limited and the other is private limited.
Both the Public Limited Company and the Private Limited Company raise their capital through shares. However, the difference is that the PLC can quote the shares in a stock exchange whereas the Ltd Company cannot.
The shares can be brought and sold through the stock exchange in a Public Limited Company. There is no need to consult the owners for selling and buying shares. On the other hand, the shares of Ltd company are normally sold to close friends and others and that can only be done if all the shareholders agree.
Talking of shares, the government may hold a majority of shares in a Public Limited Company. This does not happen in a Ltd company as the majority of the shares will be with a family or with private individuals. In a public Limited Company, the shares can be transferred freely. This cannot be done with a Ltd company.
While a Ltd company thinks more of profit from the business, the Public Limited Company cares less of profit as it is concerned with services and goods for the public. The Public Limited Company has a greater impact on the public as the shares are public. On the other hand, the Ltd companies have no impact on the public as it is just household business. If something goes wrong with a Public Limited Company, it has very adverse impact on the public.
When talking of formation of the Ltd and the PLC, more legal requirements are needed in forming a PLC.
Summary
1. PLC means Public Limited Company and Ltd means a Private Limited Company.
2. PLC can quote the shares in a stock exchange whereas the Ltd Company cannot.
3. The shares in a PLC can be brought and sold through the stock exchange and there is no need to consult the owners for selling and buying shares. On the other hand, the shares of Ltd company are normally sold to close friends and others and that can only be done if all the shareholders agree.
4. While a Ltd company thinks more of profit from the business, the Public Limited Company cares less of profit as it is concerned with services and goods for the public.
5. If something goes wrong with a Public Limited Company, it has very adverse impact on the public.
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I was bored!!
So was I!
me tooo!!
Brilliant explanation…
there is a spelling mistake on the 14th line and the 3rd word in…it should be ‘does’ instead of ‘dos’……….
but v helpful otherwise..helped me lots..
But you missed “brought”
Very educating piece indeed
Wow! Can I have some references please?
Ltd – shares are often sold to close friends ? What proportion of shares are issued like this?
Ltds have no impact on the public – So they have no suppliers, customers, employees etc? Who is the public in this definition?
PLCs have less concern for profit – Please find me a PLC where the directors primary concern is generating a profit for the shareholders.
Point 5 I have covered and is just an extension of point 3.
I’d give this article a solid D+, but an A+ if you can correct it with references.
Who surfers incase of challenges in LTD coys
So interesting
Good explanation, thanks for this enlightenment
Which one do you advise to better between the two? Though thanks for explanations!
Good explenation, but you write “that the PLC can quote the shares in a stock exchange whereas the Ltd Company cannot”, but when I browse the NYSE i see alot of Ltd Companies (maybe there is a language confusion)?
Let me clear something here, the article should be seen as THEORETICAL and may not apply in real life, where private (share) holders might decide to (fake or) reveal their shares…
Good explaination, Thank you for this enlightment.
I imrove alot with the explanation.