{"id":7423,"date":"2020-03-21T09:16:51","date_gmt":"2020-03-21T09:16:51","guid":{"rendered":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/?p=7423"},"modified":"2025-04-15T12:34:55","modified_gmt":"2025-04-15T11:34:55","slug":"difference-between-private-and-public-companies","status":"publish","type":"post","link":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/difference-between-private-and-public-companies\/","title":{"rendered":"Private vs public companies: Similarities and differences"},"content":{"rendered":"      <div class='post-lastupdated'>\r\n        <strong>Last updated: 15 Apr 2025<\/strong>\r\n      <\/div>\r\n    \n<p><span class=\"TextRun Highlight SCXW85561877 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"none\"><span class=\"NormalTextRun AdvancedProofingIssueV2Themed SCXW85561877 BCX0\">The vast majority of<\/span> <span class=\"NormalTextRun SCXW85561877 BCX0\">companies<\/span> <span class=\"NormalTextRun SCXW85561877 BCX0\">in the UK are incorporated as <\/span><span class=\"NormalTextRun SCXW85561877 BCX0\">private limited companies. <\/span><span class=\"NormalTextRun SCXW85561877 BCX0\">However, some companies choose to register as public limited companies (PLCs) instead or even convert their private companies into public companies later on.<\/span><\/span><\/p>\n<p>Below, we explore some of the similarities and differences between private and public companies, along with the benefits and drawbacks of each business structure.<\/p>\n      <div class=\"shortcode bg-sky-100 text-sky-700 marker:text-sky-700 p-6 last:mb-0\" role=\"alert\">\r\n        <h3 class=\"flex items-center text-xl text-sky-700 my-0\">Key Takeaways<\/h3>\r\n        <div class=\"text-left flex-auto [&>a]:text-sky-700 [&>a]:font-semibold [&>a]:underline [&>a:hover]:text-sky-500 [&>li]:marker:!text-sky-700\">\r\n          <\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"5\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">Public and private companies are both incorporated legal entities that can own assets and be held financially liable. They also have similar filing requirements and offer their owners limited liability protection.<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"5\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">The main difference between public and private companies is that private companies cannot sell their shares via a stock exchange. They also have different director and company secretary requirements, and public companies can\u2019t trade before receiving a trading certificate.<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"5\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">While public companies offer the financial benefit of raising capital, they also have less autonomy than private companies and are subject to greater disclosure requirements.<\/span><\/li>\n<\/ul>\n<p>        <\/div>\r\n      <\/div>\r\n    \n<h2 id=\"what-do-private-and-public-companies-have-in-common\">What do private and public companies have in common?<\/h2>\n<p><span class=\"TextRun Highlight SCXW134214822 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW134214822 BCX0\">Private limited companies and PLCs are distinct legal entities<\/span> separate from their owners. Both<span class=\"NormalTextRun SCXW134214822 BCX0\">\u00a0can hold assets, <\/span><span class=\"NormalTextRun AdvancedProofingIssueV2Themed SCXW134214822 BCX0\">enter into<\/span><span class=\"NormalTextRun SCXW134214822 BCX0\"> contracts, sue, and be sued. The shareholders\u2019 liability to the <\/span><span class=\"NormalTextRun SCXW134214822 BCX0\">company<\/span><span class=\"NormalTextRun SCXW134214822 BCX0\"> is also limited to the unpaid issue price of the shares they hold<\/span><span class=\"NormalTextRun SCXW134214822 BCX0\">.<\/span><\/span><\/p>\n<p>Furthermore, they are both incorporated companies and must be registered with Companies House. This involves creating a <a href=\"https:\/\/www.qualitycompanyformations.co.uk\/blog\/memorandum-and-articles-association\/\" target=\"_blank\" rel=\"noopener noreferrer\" data-wpel-link=\"internal\">memorandum and articles of association<\/a> and completing an application form.<\/p>\n<p>          <li class=\"marker:!text-primary\">\r\n            <a href=\"https:\/\/www.qualitycompanyformations.co.uk\/blog\/sell-shares-in-private-limited-company\/\" class=\"font-semibold\" data-wpel-link=\"internal\"><span>Can I sell shares in a private limited company?<\/span><\/a>\r\n          <\/li>\r\n                            <li class=\"marker:!text-primary\">\r\n            <a href=\"https:\/\/www.qualitycompanyformations.co.uk\/blog\/company-limited-by-shares\/\" class=\"font-semibold\" data-wpel-link=\"internal\"><span>What does it mean when a company is limited by shares?<\/span><\/a>\r\n          <\/li>\r\n                            <li class=\"marker:!text-primary\">\r\n            <a href=\"https:\/\/www.qualitycompanyformations.co.uk\/blog\/limited-liability\/\" class=\"font-semibold\" data-wpel-link=\"internal\"><span>What does limited liability mean?<\/span><\/a>\r\n          <\/li>\r\n                  <\/p>\n<p>There are also various common duties that apply to private and public companies, such as annual filing requirements (i.e., <a href=\"https:\/\/www.qualitycompanyformations.co.uk\/services\/confirmation-statement\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\">confirmation statements<\/a>, annual accounts, and Company Tax Returns), and both are governed by the <a href=\"http:\/\/www.legislation.gov.uk\/ukpga\/2006\/46\/contents\" target=\"_blank\" rel=\"noopener noreferrer\" data-wpel-link=\"external\">Companies Act 2006<\/a>.<\/p>\n<h2 id=\"differences-between-a-public-and-private-company\">Differences between a public and private company<\/h2>\n<p><span class=\"TextRun Highlight SCXW19239478 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW19239478 BCX0\">The <\/span><span class=\"NormalTextRun SCXW19239478 BCX0\">big difference<\/span><span class=\"NormalTextRun SCXW19239478 BCX0\"> is that p<\/span><span class=\"NormalTextRun SCXW19239478 BCX0\">ublic<\/span><\/span><span class=\"TextRun SCXW19239478 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW19239478 BCX0\"> companies can sell their shares to the <\/span><span class=\"NormalTextRun AdvancedProofingIssueV2Themed SCXW19239478 BCX0\">general public<\/span><span class=\"NormalTextRun SCXW19239478 BCX0\"> via a stock exchange<\/span><\/span><span class=\"TextRun Highlight SCXW19239478 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW19239478 BCX0\">, whilst private <\/span><span class=\"NormalTextRun SCXW19239478 BCX0\">companies <\/span><span class=\"NormalTextRun SCXW19239478 BCX0\">can&#8217;t<\/span><\/span><span class=\"TextRun SCXW19239478 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW19239478 BCX0\">. <\/span><span class=\"NormalTextRun SCXW19239478 BCX0\">Other distinctions between private and public companies include:<\/span><\/span><\/p>\n<ul>\n<li>Minimum number of directors &#8211; private companies only need one director, whereas PLCs require at least two<\/li>\n<li><span class=\"TextRun Highlight SCXW228917262 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW228917262 BCX0\">PLCs must apply for a trading certificate <\/span><span class=\"NormalTextRun SCXW228917262 BCX0\">before they can begin trading or borrowing. The certificate <\/span><span class=\"NormalTextRun SCXW228917262 BCX0\">confirms<\/span><\/span><span class=\"TextRun SCXW228917262 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW228917262 BCX0\"> they have a minimum issued share capital of \u00a350,000, with at least one-quarter of the nominal value and any premium being paid up in full<\/span><span class=\"NormalTextRun SCXW228917262 BCX0\">. <\/span><\/span><span class=\"TextRun SCXW228917262 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW228917262 BCX0\">T<\/span><span class=\"NormalTextRun SCXW228917262 BCX0\">he<\/span><span class=\"NormalTextRun SCXW228917262 BCX0\">se requirements <\/span><span class=\"NormalTextRun SCXW228917262 BCX0\">don\u2019t<\/span><span class=\"NormalTextRun SCXW228917262 BCX0\"> apply to private companies<\/span><span class=\"NormalTextRun SCXW228917262 BCX0\">, <\/span><\/span><span class=\"TextRun Highlight SCXW228917262 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW228917262 BCX0\">who can trade <\/span><span class=\"NormalTextRun SCXW228917262 BCX0\">immediately<\/span><span class=\"NormalTextRun SCXW228917262 BCX0\"> after incorporation and have no real share capital requirements (other than <\/span><span class=\"NormalTextRun AdvancedProofingIssueV2Themed SCXW228917262 BCX0\">having at least one share in issue at all times<\/span><span class=\"NormalTextRun SCXW228917262 BCX0\">).<\/span><\/span><\/li>\n<li><span class=\"TextRun SCXW124676945 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW124676945 BCX0\">Public companies<\/span><\/span><span class=\"TextRun SCXW124676945 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW124676945 BCX0\"> are not allowed to buy back their own shares out of capital<\/span><\/span><span class=\"TextRun SCXW124676945 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW124676945 BCX0\">, while private companies can<\/span><\/span><\/li>\n<li><span class=\"TextRun SCXW206512147 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"none\"><span class=\"NormalTextRun CommentStart CommentHighlightPipeClickedRefresh CommentHighlightClickedRefresh SCXW206512147 BCX0\">Company secretaries are optional in private companies. Meanwhile, PLCs are legally required to <\/span><span class=\"NormalTextRun AdvancedProofingIssueV2Themed CommentHighlightClickedRefresh SCXW206512147 BCX0\">appoint a qualified secretary at all times.<\/span><\/span><\/li>\n<li>PLCs are obliged to hold Annual General Meetings (AGMs). These are optional for private companies.<\/li>\n<li><span class=\"TextRun SCXW173311139 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW173311139 BCX0\">Private companies have <\/span><\/span><span class=\"TextRun SCXW173311139 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW173311139 BCX0\">nine<\/span> <\/span><span class=\"TextRun SCXW173311139 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW173311139 BCX0\">months after the end of each accounting reference period to submit their accounts to Companies House<\/span><span class=\"NormalTextRun SCXW173311139 BCX0\">, <\/span><span class=\"NormalTextRun SCXW173311139 BCX0\">whereas<\/span><span class=\"NormalTextRun SCXW173311139 BCX0\"> public companies have <\/span><\/span><span class=\"TextRun SCXW173311139 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW173311139 BCX0\">six<\/span><\/span><span class=\"TextRun SCXW173311139 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW173311139 BCX0\"> months.<\/span><\/span><\/li>\n<\/ul>\n<h2 id=\"the-advantages-and-disadvantages-of-operating-as-a-public-limited-company\">The advantages and disadvantages of operating as a public limited company<\/h2>\n<p><span class=\"TextRun SCXW264164743 BCX0\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"none\"><span class=\"NormalTextRun CommentStart CommentHighlightPipeClickedRefresh CommentHighlightClickedRefresh SCXW264164743 BCX0\">Now that <\/span><span class=\"NormalTextRun CommentHighlightClickedRefresh SCXW264164743 BCX0\">we\u2019ve<\/span><span class=\"NormalTextRun CommentHighlightClickedRefresh SCXW264164743 BCX0\"> explored their similarities and differences, <\/span><span class=\"NormalTextRun CommentHighlightClickedRefresh SCXW264164743 BCX0\">let\u2019s<\/span> examine<span class=\"NormalTextRun CommentHighlightClickedRefresh SCXW264164743 BCX0\">\u00a0why a private company may wish to <\/span><span class=\"NormalTextRun CommentHighlightClickedRefresh SCXW264164743 BCX0\">c<\/span><span class=\"NormalTextRun CommentHighlightClickedRefresh SCXW264164743 BCX0\">on<\/span><span class=\"NormalTextRun CommentHighlightClickedRefresh SCXW264164743 BCX0\">ver<\/span><span class=\"NormalTextRun CommentHighlightClickedRefresh SCXW264164743 BCX0\">t<\/span><span class=\"NormalTextRun CommentHighlightClickedRefresh SCXW264164743 BCX0\"> to a PLC.<\/span><\/span><\/p>\n<h3 id=\"advantages\">Advantages<\/h3>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">The most obvious advantage is the financial benefit of raising capital. PLCs can use the capital to finance acquisitions, expansion, research and development (R&amp;D), or debt repayment.<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">PLCs can seem more credible and prestigious due to their higher regulatory requirements, share capital requirements, etc.<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">If the company lists on a stock exchange, it can reap significant profits for existing shareholders if they decide to \u2018cash out\u2019 (i.e. use it as an exit strategy) as well as generate publicity for the company and provide an indisputable valuation of the company on an ongoing basis<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">Publicly traded shares are generally worth more than private company shares<\/span><\/li>\n<\/ul>\n<h3 id=\"disadvantages\">Disadvantages<\/h3>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"4\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">Greater financial contributions are required from the outset. Specifically, because of the minimum share capital requirement of \u00a350,000 (of which a quarter needs to be paid up).<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"4\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">PLCs are subject to higher regulatory requirements, including in relation to their accounts, the need to have an audit, and host annual general meetings. If the company has shares admitted to a stock exchange, the regulatory requirements will increase even further.<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"4\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">The existing management team and shareholders can lose control of the company if an investor or group of investors acquires a controlling stake in the business<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"4\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\">Going public and creating an initial public offering (IPO) is expensive and time-consuming<\/li>\n<\/ul>\n<h2 id=\"how-to-change-your-company-structure\">How to change your company structure<\/h2>\n<p><span data-contrast=\"none\">If you are looking to\u00a0<\/span><span data-contrast=\"none\"><span style=\"box-sizing: border-box; margin: 0px; padding: 0px;\">re-register a private limited company as a public limited company, <a href=\"http:\/\/www.legislation.gov.uk\/ukpga\/2006\/46\/part\/7\" target=\"_blank\" rel=\"noopener noreferrer\" data-wpel-link=\"external\">part 7 of the Companies Act 2006<\/a><\/span>\u00a0provides the mechanism for changing the legal structure. <\/span><span data-contrast=\"none\">The primary requirement is the passing of a special resolution to approve the conversion (which requires at least a 75% majority vote in favour).<\/span><\/p>\n      <div class=\"shortcode shortcode-image\">\r\n        <a href=\"https:\/\/hubspot.sjv.io\/OrKdGZ\" data-wpel-link=\"external\" target=\"_blank\" rel=\"noopener noreferrer\">\r\n          <img decoding=\"async\"\r\n            src=\"https:\/\/cdn-brand.s3.eu-west-1.amazonaws.com\/assets\/images\/hubspot_mobile.png\"\r\n            alt=\"Get Started With HubSpot's Free Tools.\"\r\n            class=\"md:hidden\"\r\n            loading=\"lazy\"\r\n          \/>\r\n          <img decoding=\"async\"\r\n            src=\"https:\/\/cdn-brand.s3.eu-west-1.amazonaws.com\/assets\/images\/hubspot_desktop.png\"\r\n            alt=\"Get Started With HubSpot's Free Tools.\"\r\n            class=\"hidden md:block\"\r\n            loading=\"lazy\"\r\n          \/>\r\n        <\/a>\r\n      <\/div>\r\n    \n<p><span data-contrast=\"none\">Additionally, the company will need to change its name (so that it ends with either \u2018Public Limited Company\u2019 or \u2018PLC\u2019), adopt an appropriate set of articles of association for a public limited company, meet the minimum share capital requirements, and submit the\u00a0<a href=\"https:\/\/www.gov.uk\/government\/publications\/re-register-your-private-limited-company-to-a-plc-rr01\" target=\"_blank\" rel=\"noopener noreferrer\" data-wpel-link=\"external\">form RR01<\/a>.<\/span><\/p>\n<p><span data-contrast=\"none\">It is also possible to re-register a public limited company into a private limited company through a similar process. For this, you&#8217;ll need the <\/span><a href=\"https:\/\/assets.publishing.service.gov.uk\/media\/661fd5723771f5b3ee757eb6\/RR02_v5.0_final.pdf\" data-wpel-link=\"external\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-contrast=\"none\">form RR02<\/span><\/a><span data-contrast=\"none\"> instead.<\/span><\/p>\n<h2 id=\"is-a-private-or-public-company-best-for-you\">Is a private or public company best for you?<\/h2>\n<p><span data-contrast=\"none\">Choosing a legal structure for your business depends on your circumstances and preferences regarding how you\u2019d like your company to operate. We hope this blog has clarified the key similarities and differences between private and public companies and helped make your decision easier.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">If you\u2019re ready to incorporate, look no further than Quality Company Formations, where we have the ideal formation package for every company structure. Simply start by choosing your ideal company name on the <\/span><a href=\"https:\/\/www.qualitycompanyformations.co.uk\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\"><span data-contrast=\"none\">QCF website<\/span><\/a><span data-contrast=\"none\">.<\/span><\/p>\n<p><span data-contrast=\"none\">If you need assistance with changing your legal structure, <\/span><a href=\"https:\/\/www.qualitycompanyformations.co.uk\/contact-us\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\"><span data-contrast=\"none\">contact our team<\/span><\/a><span data-contrast=\"none\"> of experts on <\/span><a href=\"tel:020 3908 0044\" data-wpel-link=\"internal\"><span data-contrast=\"none\">020 3908 0044<\/span><\/a><span data-contrast=\"none\">.<\/span><\/p>\n<p><span data-contrast=\"none\">Alternatively, please leave us a comment below if you have any questions. Don\u2019t forget to take a look at the <\/span><a href=\"https:\/\/www.qualitycompanyformations.co.uk\/blog\/\" target=\"_blank\" rel=\"noopener\" data-wpel-link=\"internal\"><span data-contrast=\"none\">QCF blog<\/span><\/a><span data-contrast=\"none\"> for more articles like this.<\/span><\/p>\n      <div class=\"shortcode shortcode-image\">\r\n        <a href=\"https:\/\/www.qualitycompanyformations.co.uk\/fully-inclusive-package\/\" data-wpel-link=\"internal\">\r\n          <img decoding=\"async\"\r\n            src=\"https:\/\/cdn-quality.s3.eu-central-1.amazonaws.com\/assets\/custom\/images\/blog\/qcf-blog_sidebar.png?v=4\"\r\n            alt=\"Fully Inclusive Package\"\r\n            class=\"md:hidden\"\r\n            loading=\"lazy\"\r\n          \/>\r\n          <img decoding=\"async\"\r\n            src=\"https:\/\/cdn-quality.s3.eu-central-1.amazonaws.com\/assets\/custom\/images\/blog\/qcf-blog_banner.png?v=4\"\r\n            alt=\"Fully Inclusive Package\"\r\n            class=\"hidden md:block\"\r\n            loading=\"lazy\"\r\n          \/>\r\n        <\/a>\r\n      <\/div>\r\n    \n"},"excerpt":{"rendered":"<p>The vast majority of companies in the UK are incorporated as private limited companies. However, some companies choose to register as public limited companies (PLCs) instead or even convert their private companies into public companies later on. Below, we explore some of the similarities and differences between private and public companies, along with the benefits [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":7416,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1231],"tags":[],"class_list":["post-7423","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-company-formation"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.9 (Yoast SEO v24.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Private vs Public Companies: Similarities and Differences<\/title>\n<meta name=\"description\" content=\"Discover the similarities and differences between private and public companies, and the pros and cons of going public.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.qualitycompanyformations.co.uk\/blog\/difference-between-private-and-public-companies\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Private vs public companies: Similarities and differences\" \/>\n<meta property=\"og:description\" content=\"Discover the similarities and differences between private and public companies, and the pros and cons of going public.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.qualitycompanyformations.co.uk\/blog\/difference-between-private-and-public-companies\/\" \/>\n<meta property=\"og:site_name\" content=\"Quality Formations Blog\" \/>\n<meta property=\"article:published_time\" content=\"2020-03-21T09:16:51+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-04-15T11:34:55+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.qualityformationsblog.co.uk\/wp-content\/uploads\/2020\/03\/QCF-Private-Public-Image.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1500\" \/>\n\t<meta property=\"og:image:height\" content=\"750\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Nicholas Campion\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Nicholas Campion\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Private vs Public Companies: Similarities and Differences","description":"Discover the similarities and differences between private and public companies, and the pros and cons of going 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