What is the difference between Ltd and PLC?

PLC stands for a public limited company while, on the other hand, Ltd stands for private limited company. The public limited company can buy and sell shares through the stock exchange while the shares of the private limited company are sold to their close friends or others, and this can be done through shareholders agree.

In a public limited company, the shares can be transferred easily, while in private limited companies, shares cannot be transferred. Most of the shares in the public limited company are held by the government, while the shares of private limited are not held by the government.

The profit made by the public limited company is less because they are concerned with the good and service for the public while the private limited company makes more profit. Lastly, if something goes wrong with the public limited company, it harms the public, while if something goes wrong with a private limited company, it does not have an adverse effect on the public.

When you say PLC, this means Public Limited Company. LTD, on the other hand, means Private Limited Company. It should be remembered that these two companies would be able to get their money through the shares that the companies get.

The main difference between these two is for PLC; they will be able to quote the shares that they need in the stock exchange while for the LTD, this is just not possible. Take note that choosing one company structure over the other will always have their advantages and disadvantages. It will be useful to know the differences of each so that you can decide if in case you are going to open your own company.

There are so many differences between Ltd or Public Limited Company and PLC or Private Limited Company. Even the full form of the two terminologies shows there are some differences between the two. One of the things that are common to the two is that both sources for funds through shares.

In a public limited company, you don't need to meet with the owners of the shares before they can be sold. In contrast, you will need to meet with the shareholders in a private limited company before shares can be sold or bought. Most times, shares are sold to close friends unless all the shareholders agree that they should be sold to others.

In a public limited company, the bulk of shares are usually owned by the government, whereas shares belong to private individuals in a private limited company. One of the major objectives of a private limited company is to make more profits, whereas a public limited company is most concerned with the various services it is offering to the general public.