PUBLIC LIMITED COMPANY

Public Limited Company Is The Biggest Business Setup In India And Is Preferred For Businesses Who Want To Get Listed & Raise Funds

 

A public limited company is a Company limited by shares, which can offer its shares or debentures to Public, can make or accept deposits from Public at large and there are no restrictions on the transfer of shares. The businesses with a large scale of operation and with an expansion plan should opt this form of business. The minimum number of 7 persons is required as shareholders and 3 as directors to set up a limited company and there is no cap on the maximum number of shareholders.

A public limited company is a voluntary association of members, which is incorporated and therefore has a separate legal existence and limited liabilityof its members to the extent of the amount of shares subscribed.

It also has a minimum share capital requirement of Rs.5 Lakhs. A Public Limited Company should be registered with Registrar of Companies (ROC) of the respective State under the Companies Act, 1956. Although the registration with ROC is on State level, it is free to do Business anywhere in India.

A limited company grants limited liability to its owners and management. Being a public company, it allows a firm to sell shares to investors this is beneficial in raising capital. It has more stringent regulatory requirements compared to a Private Limited Company. It has most of the characteristics of a private limited company & the ability to have any number of members, ease in transfer of shares, more transparency. Identifying marks of a public limited company are name, number of members, shares, formation, management, directors and meetings, etc.