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Limited companies

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A public limited company has shareholders who own shares in the company and have limited liability. Profits and losses are shared between shareholders. There is no limit on the number of shareholders but large holdings are monitored. Going public requires extensive registration and listing with regulatory bodies, making it an expensive process. A private limited company also has shareholders with limited liability and its own legal identity, allowing more capital than a sole proprietorship. However, shares cannot be sold to the public.

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By Lauren Mills.
What is a public limited company? A public limited company is made up of shareholders. It will have 2 or more owners and will have limited liability. The shareholders owns it. The profits and losses are shared between the shareholders.
Advantages of public limited companies.. • There is not a limit of how many shareholders they can have. Although the DTI monitors very large holdings in case some may be contrary to shareholders’ and the public interest.
Disadvantages of public limited companies.. • Before a company can go ‘public’ it must submit full details to the Registrar of Companies and the stock exchange council in order to protect potential investors. This is a very expensive process.
What is a private limited company? A sole trader or a partnership may wish to remove the risk of unlimited liability by forming a private limited company. A private limited company has its own legal personality, being separate from its owners.
Advantages of private limited companies.. • More capital is available because there are more owners. • The owners are protected from loosing heir personal possessions by limited liability.
Disadvantages of private limited companies.. • Although more capital can be raised than by sole traders and partnerships, there is still the problem that shares cannot be sold to the general public.

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Limited companies

  • 2. What is a public limited company? A public limited company is made up of shareholders. It will have 2 or more owners and will have limited liability. The shareholders owns it. The profits and losses are shared between the shareholders.
  • 3. Advantages of public limited companies.. • There is not a limit of how many shareholders they can have. Although the DTI monitors very large holdings in case some may be contrary to shareholders’ and the public interest.
  • 4. Disadvantages of public limited companies.. • Before a company can go ‘public’ it must submit full details to the Registrar of Companies and the stock exchange council in order to protect potential investors. This is a very expensive process.
  • 5. What is a private limited company? A sole trader or a partnership may wish to remove the risk of unlimited liability by forming a private limited company. A private limited company has its own legal personality, being separate from its owners.
  • 6. Advantages of private limited companies.. • More capital is available because there are more owners. • The owners are protected from loosing heir personal possessions by limited liability.
  • 7. Disadvantages of private limited companies.. • Although more capital can be raised than by sole traders and partnerships, there is still the problem that shares cannot be sold to the general public.