Public and Private limited companies

Each type of company has its own identities in law and has to pay different co-operation tax on its profits. The companies owns it's own assets and employs it's own but not it's owners. The company will operate until it becomes liquidated.

Benefits (Public)-

• Limited liability 
• Increased capital as public can buy shares
• Minimum of two directors and two shareholders
• Shares increase in value if company is successful
• Operating large scale can cause economies of scale to occur

Drawbacks (Public)-

• Many regulations to comply with 
• Accounts (and problems) are public knowledge
• Shareholder may sell shares if dividends are poor
• Original owner may lose overall control 

Benefits (Private)-

• Limited liability 
• Minimum of one director and one shareholder
• Easy to set-up/affairs are private
• Easier to raise capital/borrow from banks

Drawbacks (Private)-

• Cannot sell shares to public
• More regulation to comply with
• Accounting procedurs may be costly
• Death of a shareholder has no effect on the company
• Share transfers need agreement of all benefactors in the company