Difference Between Limited Company & Public Limited Company

Written by krista martin
  • Share
  • Tweet
  • Share
  • Pin
  • Email
Difference Between Limited Company & Public Limited Company
(Jupiterimages/Photos.com/Getty Images)

The difference between a private limited company and public limited company relates mostly to size, legal formalities and the subscription of shares. Knowing the differences between the two may help you ensure that your company, whether it is private or public, is following legal and formal quorum.

Other People Are Reading


A private limited company must have at least two members and no more than 50, whereas a public limited company must have at least seven members. No maximum number of members exists for public limited companies.

Private companies must have at least two directors, and a public limited company is required to have three.


Private limited companies have fewer legal formalities to follow than a public limited company; for example, public limited companies must hold statutory meetings and file reports to the Registrar of Companies, whereas a private company does not.

Public companies can freely transfer to subscribe to shares, whereas the transfer of shares is restricted by the articles of association of a private company.


Private companies are required to use the word “Private Limited” at the end of the name, whereas “Limited” is required for public companies.


A private limited company can start up the business immediately, whereas a private company is required to obtain a certificate to commence business. The public company must also collect a minimum subscription and at least 5 per cent of the nominal amount of shares applied for on the application.

Don't Miss

  • All types
  • Articles
  • Slideshows
  • Videos
  • Most relevant
  • Most popular
  • Most recent

No articles available

No slideshows available

No videos available

By using the eHow.co.uk site, you consent to the use of cookies. For more information, please see our Cookie policy.