Private vs public companies: what's the difference?
Tools & Resources
Key Learnings
- A private company is owned entirely by the company’s directors or private investors.
- A public company is owned partly or entirely by the public.
- One step at a time, register and allow your company to grow.
If you’re thinking about setting up a business, one of the first decisions to make is whether it's in your best interest for it to be private or public.
To help you out, here’s a quick primer on the difference between private and public companies and what that means for you.
What is a private company?
A private company is owned entirely by the company’s directors or a group of private investors. Most start-ups and SMEs fall into this category.
A private company only needs one shareholder – although it can have more – and this can be the founder of the business.
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