Differentiate between Private ltd and Public limited company.

Private Limited Company

Private limited companies are privately owned by a select group of people, such as a family. They cannot offer shares in the company to the general public. However, they can still operate as a single director. Private limited companies cannot trade their shares on the stock exchange.

Private companies offer many advantages over public ones. Private companies are not required to disclose financial information, even if it is minimal. This information may be of value to other competitors. Public limited companies have more regulations than private businesses. Private companies are also subject to fewer government regulations.

Public Limited Company

A large number of investors own a public limited company. Public Limited Companies are listed on the stock exchange and their shares are traded among investors.

The sale of securities can be used to raise capital for public limited companies.