Difference Between Similar Terms and Objects

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 dos 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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