Public limited company:

Compared with a private limited company, a small public limited company could prove to be a thoroughly sensible solution to obtain and maintain capital in the long term. Disadvantages, especially an extra effort resulting from more formalities, often overweigh advantages. Introduction to the stock exchange results in an increase of the equity capital, leading to an increase of the equity ratio and the credit worthiness. The present shareholders or owners of a company with an appropriate strategic planning do, however, keep their independence. In addition, employees can be bound to the company.