Mika
VIP Contributor
If you dream to build a big business, you have two options, either to launch a private limited company or go public and become a public limited company. Interestingly, the road to a public limited company begins from a private limited company. In other words, you will have to start as a private limited and then later go public by offering IPO and becoming a public limited company.
A public limited company has huge working capital and paid-up capital, however, a private limited company has relatively smaller working capital and paid-up capital. This is not the only difference between these two types of companies, how you trade shares are also the major difference. While shares of public limited companies trade publicly, through a stock exchange, shares of private limited companies are available for buying and selling privately.
A public limited company has thousands of shareholders, however, a private limited company is a company that has few shareholders, and the shareholders are mostly family and friends.
A public limited company has huge working capital and paid-up capital, however, a private limited company has relatively smaller working capital and paid-up capital. This is not the only difference between these two types of companies, how you trade shares are also the major difference. While shares of public limited companies trade publicly, through a stock exchange, shares of private limited companies are available for buying and selling privately.
A public limited company has thousands of shareholders, however, a private limited company is a company that has few shareholders, and the shareholders are mostly family and friends.
