Public Limited Company

WHAT IS A PUBLIC LIMITED COMPANY?

A public limited company is the largest form of business in India. A public limited company can be listed on stock exchanges and can thus invite funds from the public. Also, There is no restriction as to the maximum no. of shareholders in a limited company.

It is a company that is always opting for where huge investment is desired from the public. A public company can go for the listing of its share at the stock market as it has no limit on its number of shareholder and can fetch from the public through IPO

public limited company

ADVANTAGES OF PUBLIC LIMITED COMPANY

Access to public funds

A public company can invite the public to subscribe to its shares, unlike a private limited company.

Limited liability

A shareholder is liable only to the extent of unpaid amount on his holding.

Greater borrowing power

Companies have better avenues for borrowing funds unlike other forms of business.

Business Continuity

A shareholder is liable only to the extent of the unpaid amount on his holding.

No Restriction on share transfer

There is no restriction on transferability of shares. A shareholder can transfer his shares to any person.

Perpetual Existence

A company continues to exist irrespective of the status of the owners.

DISADVANTAGES OF PARTNERSHIP FIRM

Strict legal formalities and compliances

Strict legal formalities and regulations are to be complied with by public limited companies.

Sharing of profits

Profits of the company are shared amongst many shareholders thereby decreasing each person’s share.

Loss of control

Control over the company’s affairs seizes to exist in few hands.

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PRE-REQUISITES FOR INCORPORATION OF PUBLIC LIMITED COMPANY

Applying DIN & DSC

DSC and DIN for all directors are required.Affidavit and declaration by first subscribers and Directors should be prepared.

Name Approval

4-6 proposed names should be provided that should be unique and suggestive of company business.

Company Registered

Once the application is duly filed and accepted by ROC, Certificate of incorporation is issued and the company is all set to start it’s operations.

Document Submission

Duly filled Application along with required documents should file with the RoC.

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