Public Limited Company


Public Limited Company

A limited company grants limited liability to its owners and management. Being a public company allows a firm to sell shares to investors this is benificial in raising capital. A minimum of three Directors are required for establishing a Public Limited Company and it has more stringent regulatory requirements compared to a Private Limited Company.

Public Limited Companies are those types of companies where minimum number of members is seven and there is no cap on the maximum number of members. A public limited company has most of the characteristics of a private limited company. A public limited company has all the advantages of private limited company and the ability to have any number of members, ease in transfer of shareholding and more transparency. Identifying marks of a public limited company are name, number of members, shares, formation, management, directors and meetings, etc.


Requirements for Registration of Public Limited Company

1. Minimum 7 shareholders & 3 directors are required for Public limited company registration.
2. Minimum share capital required to start a public limited company is Rs. 5 lac.

Benefits of Registration of Public Limited Company

  1. There exists no limit on maximum number of shareholders in public limited structure.
    2. A public limited company may gather more funding.
    3. Share can be listed for Initial Public Offer (IPO) .


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