Private Limited Company and Public Limited Company - Questions and Answers

A private limited company is a business entity that has one or more partners, separate legal existence, perpetual existence, limited liability, and non-transferable shares.

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A public limited company is a business entity that has two or more partners, separate legal existence, perpetual existence, limited liability, transferable shares, and generally a greater number of shareholders.

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The advantages of a private limited company include limited liability for shareholders, the ability to raise money by selling shares to family and friends, continuity of the business even if a shareholder dies, and relatively private financial records.

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The disadvantages of a private limited company include the need to share profits among all shareholders, inability to sell shares to the public, higher startup costs compared to a partnership, and some loss of control as shareholders have voting rights.

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The minimum owners capital required for a private limited company is €35,000.00, with at least half of it due at the establishment.

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The owners capital in a private limited company is split among the shareholders according to their contribution.

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The minimum owners capital required for a public limited company is €70,000.00, with at least half of it due at the establishment.

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The owners capital in a public limited company is split into equal shares among the shareholders.

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