A Public Limited Company, legally known as PLC, is a publicly held company. It is a limited company whose shares can be traded with the public. PLC can be listed or not listed in the stock exchanges. PLC requires a minimum of 3 Directors as a prerequisite.

A Private Limited Company is the most popular type of business entity and has global recognition. In a private limited company minimum number of members is two and maximum number is two hundred. The maximum number of directors shall have to be mentioned in the Articles of Association.

1. It can start business immediately after incorporation, no certificate to commence is required but in a public company it is necessary to have a certificate to commence business.
2. A private company collects the requisite capital by private arrangement and does not invite the general public to buy its shares by the issue of a prospectus, it may allot shares without following the formalities of a public company.
3. A private company, unlike a public company may pay remuneration to directors and managerial staff or appoint any one to an office for profit.
4. It may grant loans to directors without the consent or approval of the central govt.

5. The control and management is generally in the hands of the owners of capital which is not so in a public company.