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- Shares can be issued to investors in exchange for money as a way of raising Capital.
- Legal identity: the business is separate from from its owners. It can take legal action against other persons or companies and be the subject of legal action against it.
- Minimum of 2 directors. In certain circumstances there may only be one. There is no upper limit, but if there are too many, it may be harder to run the business.
- Financial information is not private.
- You have to submit your information to the Registrar of Companies, which can be time consuming.
- Shares cannot be offered for general sale.
- Private limited companies can be short of capital as it is harder to gain capital.
- Most shareholders will expect a dividend to be paid.
Hope this helped!
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