Difference Between LTD and PLC

Economy of a country is determined by the public and private sectors, both are equally important to maintain the balance of the economy.

GDP of country is the reflection of economic growth in the country, thus it is determined by public and private sectors. Companies have shares which determine their value in the market.

Companies invest in certain things, probably the property and get profit, as  the value of a particular property rises.

These companies or firms are directly related with the life of common people, for example if a person is using toothpaste of a brand and the brand witness loss then they might increase the price of toothpaste, which will ultimately affect the pocket of people.

Almost every developing or developed country has foreign investments as well which certainly falls under the private sector but the interference and permissions of the government is important.

LTD vs PLC

The difference between Ltd and PLC is their stake in share for buying and selling. Ltd and PLC are two types of companies among which Ltd is a private company and PLC is a public limited company. They are entirely different from each other in terms of their ownership, working, governmental interference, etc.

LTD vs PLC 1

 

Comparison Table

Parameters of ComparisonLTDPLC
SupervisionPrivate owner (one or many)Government mostly
Transfer of shareNot easily transferredEasily transferred
ShareholdersPrivate peopleGovernment and general public
ProfitAims their own profitAims for public’s profit

 

What is LTD?

Ltd signifies private limited company, these types of companies are part of the private sector, their owners are either sole traders or they have partnerships of two or more people.

Ltd companies cannot quote shares in stock exchange, their shares are sold to their family members or close friends or anyone they find  trustworthy, that too only when shareholders agree to it.

As adding more partners would be a good and hassle free option. It also limits the liability of business.

Ltd company is a flexible structure wherein there can be more than one owner, employees can be employed according to the will of the owner, in this sector growth of individuals is more as compared to the public sector.

As Ltd companies are household business their fall does not affect the public, and their motive is just their profit from their business.

Another important position is of a director who is responsible for tax filing and all the administrative work, in general he is an employee.

The Finances of a company are different from its owner. A company’s finance is used generally for the distribution of dividend among the shareholders and the director can take an amount from the company’s finance for salaries and loans.

For setting up Ltd company there should be a name of company, and office address, moreover there should be one director and at least one shareholder, paperwork is equally important and thus an agreement should be made.

ltd
 

What is PLC?

PLC stands for public limited company. As the name suggests PLC works under government. These companies are considered to be part of the public sector.

PLC can quote these shares in the stock exchange. They are adherents of the government and work for the public not for profit. The buying and selling of shares is done without any permission of the owner.

Working of PLC includes offering of shares to the general public and those buyers will have liability to some extent, moreover they cannot be blamed for any loss incurred by the public.

An advantage of PLC over private companies is that the shares are offered to the public which further attracts individual investors, professional traders and through mutual funds, hedge funds as well.

They have more potential to grow than a private company. There are more legal procedures than private which can be seen as a disadvantage for people.

public limited company

Main Differences Between LTD and PLC

  1. Ltd companies are run under private ownership (one individual or more than one) whereas PLC rrun under supervision of government.
  2. Aim of Ltd companies in their own profit from the business on contrary PLC aims for better quality of goods and service.
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