Public and private limited companies are different and have different registration requirements. The requirements for the formation of a public limited company are: for selecting the director of the company the individual should be above the age of 25 and this rule is followed in England and Wales after the company’s act of 2006 that was developed in 2008. The minimum share of capital for the public limited company will be £50,000. The company should have shares worth value of at least £50,000. Quarter of this amount should be paid and each allotted share should be larger than the one quarter of the nominal value of the total amount of the shares.
According to the government of UK the requirements for the private limited company are explained as: only one director is needed for the company, the director can be of any nationality; one of the shareholders of the company should be of the nationality of UK and have company incorporation. The capital requirements for the private company are minimum capital requirements of £ 1 and the shares can be issued in the major currencies. The taxation of this private limited company will be: the taxes paid to a non resident of UK will not be subject to the withholding tax of the company. The tax rate of corporate tax will be set at a rate of 20%. Double tax treaties are present that provide tax benefits. The name of this private company should end in limited or Ltd. Names that provide connection with the royal family will not be accepted. Name that is already being used and is registered will not be accepted. Farming solutions will be registered as a private limited company because the legal consequences of the private limited company are less rigid than the public limited company.