Which type of limited company typically requires a minimum share capital to start?

A public limited company typically requires a minimum share capital to start, as mandated by company law in many jurisdictions. This minimum capital serves to ensure that the company has a sufficient financial foundation to operate and meet its obligations. In the context of a public company, this is particularly important since shares are offered to the public and are traded on stock exchanges, thus promoting confidence among investors.

In contrast, a private limited company does not usually require a minimum share capital, allowing for more flexibility in terms of financial contributions from founding members or shareholders. This distinction highlights the regulatory requirements aimed at maintaining certain standards for public companies because they involve wider shareholder participation and greater public scrutiny.

While both types of companies can establish share capital and may decide to employ it in their structure, the emphasis on a minimum requirement is significantly more pronounced in public limited companies to protect investors and uphold market integrity.