What are the differences between a Limited Company and a Limited Company?

What are the differences between a Limited Company and a Limited Company?

The main differences between a limited company and a limited company are the following:

• Initial capital: in order to set up a public limited company, a minimum capital of 60.000 euros, where at least 25% must be paid up at the time of incorporation, while in the limited company the minimum share capital is reduced to 1 euro (although if the capital is between 1 and 3000 euros, specific rules will apply).
• Transfer of shares or participations: the shares of a Public Limited Company can be freely transferred in the market, unless the statutes establish some limitation. The shares of a Limited Company cannot be freely transferred, but rather the consent of the other partners or compliance with certain legal or statutory requirements is required.
• Type of activity: A Public Limited Company can carry out any economic activity, except those that are reserved by law for other types of companies. If a company wants to be listed on the stock market, it must have the nature of a public limited company. A Limited Company can carry out almost any economic activity, except those that are reserved by law for Public Limited Companies or other types of companies.

Both companies are regulated by the Capital Companies Law.

Related concepts

• Limited Company
• Public Limited Company