A company is called a public limited company (PLC) or a public company whose shares can be traded on the stock exchange and can be bought or sold by anyone. Public companies have strict rules and regulations. According to law, they are required to submit their complete and true financial position so that the investors can determine the true status of the stock. A public limited company is also called a publicly held company.
It is a limited liability company whose shares are sold to the public. A limited liability company is one of the major types of companies and a public company is a major part of it.
Public Limited Company in India
India consists of various companies that are publically held. Public companies re a common type of company that runs on specific guidelines and follow certain rules and regulations
Advantages of Public Limited Company
Advantages of a public limited company Registration are as mentioned below:
- The reliability of shares is more as compared to other companies.
- A public company has the ability to raise large amounts of funds from the public.
- A public company has the trust of majority of shareholders because of its presence in the stock exchange.
- The shareholders and the members have a limited liability that is calculated on the basis of amount invested by them.
- The death of any of the shareholders does not influence the working of the public limited company.
- The borrowing capacity is higher in a public company.
Characteristics of Public Limited Company
- A minimum of 7 members is required to start a public limited company.
- The liability of the shareholders is limited to the number of shares that is held by them.
- The shares that are sold on the stock exchange can be easily transferred.
- The company is a separate entity that is separate from its members. This means that the death, insolvency of any of its members will not affect the working of the company.
- The board of directors can have a minimum of 3 and a maximum of 12 members.
Our Other Services:
Online FSSAI Registration | NBFC License in India | Register Nidhi Company | Register Private Limited Company | GST Registration Online