- Home
- Business Setup
- Intellectual Property
- Tax & Compliance
- Property
- Knowledge Center
- About us
- Income Tax Return
- GST Filing
- Contact us
- Privacy Policy
- Refund Policy
- Terms and Conditions
- Sitemap
A Public Limited Company is defined as a company that is not a private company and has a minimum paid-up share capital of INR 5 lakhs under Section 2(71) of the Companies Act, 2013.
Note: Under the Companies Act of 2013, a subsidiary company is deemed to be a public company if it is not a subsidiary of a private company, even if its articles state that it is a private company.
Incorporating a Public Limited Company is a good option for large-scale businesses that need a lot of money. For establishing a Public Limited Company, a minimum of seven members are required, with no upper limit on the number of members/shareholders.
Public Limited Companies are typically listed on stock exchanges in order to raise capital from the general public. As a result, Public Limited Companies must adhere to a plethora of government regulations, making the formation of a PLC a time-consuming process.
Separate Legal Entity: A Public Limited Company is regarded as a legal entity distinct from its shareholders. It exists in perpetuity and has its own PAN, bank accounts, approvals, contracts, licences, assets, and liabilities.
Multiple funding sources: A Public Limited Company can raise funds from both individuals and financial institutions. The funds can be raised through equity, preferred stock, or debentures.
One of the most significant advantages of a Public Limited Company is the ease with which shares can be transferred. A shareholder’s shares can be easily transferred to other legal entities – whether an individual or an organization, in India or abroad. The company’s board of directors can also be changed to ensure the company’s long-term viability. Limited
 Limited Liability
 Protection is provided to the shareholders of a Public Limited Company. In the event of an unexpected liability, it would be limited to the company and would not affect the shareholders..
