What is Public Limited Company?
A Public Limited Company has more transparency and credibility in business than Private Limited.
Public limited company always preferred if you have a broad vision from startup to IPO.
Public limited company can fulfill its capital requirements from Public as Equity or debenture or deposit.
A public limited company can have unlimited members / Share Holders.
Shares can be sold openly and offer more transparency for shareholder lenders, creditors, and bankers.
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What are the Features of Public Limited Company?
A public company shall have minimum 7 members and 3 directors. Every private limited company which is a subsidiary of public company shall be treated as public company in the eyes of law. The Liability of each member or shareholder of a public company is limited.
Advantages
The most significant benefit of forming a public limited company is the opportunity to obtain capital through the issuance of public shares. Hedge funds, mutual funds, and professional traders, as well as regular investors, are interested in a public stock market listing. Better liquidity for the shareholders as it is easier to trade.
Disadvantages
The Company can be expensive to establish, maintain and wind up. The reporting requirements can be complex and if the directors fails to meet their legal obligations, they may be held personally liable for the Company's debts.