Which one do you think is more functioning Private Limited or Public Limited Companies? A public limited company is a company listed on a recognized stock exchange and the stocks are traded publicly. On the other hand, a private limited company is neither listed on the stock exchange nor are they traded. It is privately held by its members only. A public limited company is the legal status of any firm which has offered shares to members of the general public and in turn owns a limited amount of its shares. Public limited firms are also known as publicly held companies. A private limited company is a privately held business entity. It is held by private stakeholders. The liability arrangement in these is that of a limited partnership, wherein the liability of a shareholder extends only up to the number of shares held by them. The main advantage of a private company limited by shares is the limited liability of its shareholders. Public Limited companies enjoy huge benefits like limited liability, transferability, borrowing capacity, and others. Disadvantages of a Public limited company is the potential Loss of Control, ultimately, shares control company ownership.

Sreekala P

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