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A private limited company and a public limited company are two common forms of business entities distinguished primarily by their ownership structure and the regulations they must comply with.
A private limited company is owned privately by a small group of shareholders, often including founders, family members, or a small number of investors.And a public limited company is owned by shareholders whose shares are traded freely on a stock exchange.
It includes:
Limited Liability
Separate Legal Entity
Ease of Fundraising
Enhanced Public Profile
Potential for Growth
A Private Limited Company (Pvt. Ltd.) offers benefits such as limited liability protection for shareholders, a separate legal entity status, perpetual succession, and easier fundraising through share issuance. It enhances credibility, offers tax benefits, allows for controlled ownership, and has fewer compliance requirements compared to public companies.
On the other hand, a Public Limited Company (PLC) provides access to capital markets, liquidity for shareholders, enhanced public profile, greater transparency, and the ability to attract top talent. It also enables significant growth opportunities, boosts investor confidence, facilitates mergers and acquisitions, and supports large-scale expansion and diversification initiatives. Both structures offer unique advantages, catering to different business needs and growth strategies.
