Differences Between & Similar Products
May 3, 2011 by Lyka Ricks
What are the differences between Limited Company and Private Limited Company?
Companies are just one part of many business organizations, which are basically comprised of individuals or groups of people, who have the goal of acquiring benefits and profits with a much lesser cost of expenditure. There are many types of company that are known to exist. Two of the most commonly recognized types of company are the Limited Company and the Private Limited Company. Limited Company is abbreviated as Ltd, which also means Public Limited Company. This kind of company is generally owned by the entire population, which is basically the public. Private Limited Company, on the other hand, is abbreviated as Pvt Ltd and is typically owned by a group of private entities.
The major distinction between Limited Company and the Private Limited Company is their shareholders. While Private Limited Companies are funded by several numbers of individuals only, Limited Companies are run within the hands of the general public.
Another disparity between the two companies is their exclusivity. Within the context of Private Limited Companies, one stock holder can only make amends and decisions to his shares upon the approval of the other members of the company. In Private Limited Companies, anyone can gain access to shares as it is made available to the public. More so, Limited Companies are able to offer its shares to the general population while Private Limited Companies are limited only to offering it to the individuals, who also have shares in their stocks.
And the most vital discrepancy between the two companies is that Limited Company should abide with the rules and requirements imposed by the government. In Private Limited Companies, they can formulate rules exclusive to their company only.
Today, the business world has become filled with various private and public limited companies.
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