What are the characteristics of a private limited company and a public limited company and the advantages and disadvantages?
- United Kingdom
- Beachcroft LLP
Both types of company must have a registered office in England or Wales. A private company can be incorporated with a single shareholder, holding a single issued share, and a single director. Private companies may also be able to take advantage of less onerous accounting requirements than those which apply to public companies. However, a private company, subject to limited exemptions, cannot offer its shares or debentures to the public. A public company can offer its shares or debentures to the public and can have its shares listed on the Stock Exchange. If the company’s shares are listed on the Stock Exchange, the company must comply with the disclosure and accounting obligations imposed by the London Stock Exchange Listing Rules, commonly known as “the Yellow Book”. A public company need not, however, be listed on the Stock Exchange.
A private company can be a “single member company”; a public company must have at least two members.