Private limited companies

Private limited companies

Usually shares are owned by original sole trader. Shareholders may only sell their shares with the agreement of the other shareholders. Restrictions can be made on sales of shares, not allowed to advertise its share. Smaller than public limited companies.


  • Limited liability
  • Continuity
  • Separate legal personality
  • Original owner can take control
  • Can easily raise capital
  • Greater status than unincorporated business


  • Legal formalities
  • Capital cannot be raised by sales of shares to general public
  • Difficult for shareholders to sell shares
  • End of year accounts must be sent to Companies House available for public inspection, less secrecy

Rating 3.00 out of 5

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