Public Limited Company

The Public limited company in India is a voluntary association of members which has a separate legal existence and the liability of whose members is limited. A Public Limited Company can either be an unlisted Company or listed Company on the Stock Exchange. Public Limited company also enjoys wide options to raise funds through bank loans, the general public, and Institutional investors.

A public limited company has many advantages over Private Limited Company and the ability to have any number of members, ease in transfer of shareholding and more transparency makes it popular amongst foreign investors. If you are planning to raise funds from the public through Initial Public Offer (IPO) then Start your business by incorporating Public Limited Company.

A public limited company is usually established to generate capital from external sources, i.e. the general public for starting a business, business expansion, technological advancement, global expansion, etc.

But a PLC is suitable to the large organizations which have a comprehensive perspective and higher growth possibilities, rather than a small shop located next door.

Features that make a Public Limited Company Different from Private Limited Company:

• Shares offered by a public Ltd. Co. are easily transferable to any other person, such that it merely requires filing and signing of share transfer form to transfer the shares.
• A Public Ltd. Co. is the highest corporate structure to start with.
• In Public Limited Company shareholders have a claim to part of the company’s assets and profits.
• Public Limited Company can have any number of members.
• Shares are easily transferable in Public Limited Company.