What is a Public Limited Liability Company? - Explained


Among the business types Limited Liability Companies do take a popular place among the business ownership types. Private Limited Liability Company business ownership type and public limited liability company business ownership type carrying very similar business ownership characteristics.

Public Limited Liability Company is also a limited liability company business ownership type. Unlike Private limited Liability Company business ownership type, Public Limited Liability Company business ownership type allows the companies to offer company shares to general public. Which means Public Limited Liability Company can be traded on a stock exchange of a particular country or a city.

Public Limited Liability Company does need to be a Private Limited Liability Company before to become a Public Limited Liability Company. By achieving the minimum required valuation which needs to be traded on publicly on a stock exchange, private limited liability company title is changed to public limited liability company.



Unlike Sole Proprietary Business or a Partnership Business Public Limited Liability Company is recognized as a separate entity which is identified as a legalized body represent on courts by the name of the public limited liability company.

Providing balance sheets of the company, quarterly earnings report, change in director position is mandatory for a Public Limited Liability Company rather comparing with Private Limited Liability Company.

The person or the entity holds more than 51 percent of shares of the public limited liability company is recognized as the key decision maker of the organization.

Comparing with the Private Limited Liability Companies, Public Limited Liability Companies do have very less chances of getting bankrupt due to well experienced staff members and solid business plans which can be executed after researching.