Private and Public Limited Companies

Private Limited Companies are very different from partnerships and sole traders

They have the following features:

* A company owned by at least 2 shareholders

* Shares are sold privately to friends and family who invest money into the business. They receive DIVIDENDS in return

* Shareholders have LIMITED LIABILITY

* Shareholders vote for a board of directors, who run the business

* The company must have the word “limited” or the letters “LTD” in it’s name 

Public Limited Companies are the biggest type of private businesses in the UK. They have the following features:

* Shares are sold on the London Stock Exchange

* Shareholders have LIMITED LIABILITY

* Shareholders vote for a board of directors, who run the business

* The company must have the words “public limited company” or the letters “PLC” in it’s name

* Accounts must be published, and made available to anyone who wants to see them