If you have a startup or want to establish a business, then
the one essential task is the Company Registration in which you have
many options like Private Limited Company, One Person Company, and many more.
Each type of company has a different criterion and benefits, and therefore you
must know the essential requirement of each company to do the Company
Registration.
The blog will explain all the features of Public Limited
Company in detail so that you can establish your business or startup.
#About Public Limited Company
The word "Public" in the Public Limited Company
itself represents that the general public can also participate and take the
shares of the company. In this company, there can be a high number of
shareholders. And the word "Limited" in the Public Limited Company
defines the limited Liability of shareholders. Limited Liability means the liabilities
of the shareholders are limited. If any loss happens to the company, then the
bank can recover the amount by only selling the shares of the shareholders
without touching their assets. In this company, the personal assets of the
shareholders are safe. The Public Limited Company is governed under the
Companies Act 2013.
#Features of Public Limited Company
- The organization that is applying for the Public Limited
Company must have a minimum of 3 directors and 7 shareholders.
- The maximum number of shareholders in the Public Limited
Company can be unlimited.
- The organization can be listed on the Stock Exchange, and
after that, it can raise funds from the public.
- It has the benefit of perpetual succession in which if
the company owner expires, the owner is replaceable, and the shares are also
transferable.
#Benefits of Public Limited Company
- Limited Liability: The shareholder assets do not become
liabilities if the company suffers from bankruptcy.
- Raise a large amount of money from the public:- You can
raise funds from the public and invest it directly in your business. If your
organization is large and you require significant capital, then you can start
as a Public Limited Company.
- Smooth transfer of shares:- Liquidity increases, and the
purchasing and selling process becomes fast.
#Disadvantages of Public Limited Company
1- High Compliance- Maintaining high transparency can result in
increased requirements. As it is a Public Limited Company, all the minute
information of the organization is analyzed by the public.
2- Expensive- The management of audits and the increased
requirements results in high expense to the organization.
Conclusion
If your organization can bear the expenses of Private
Limited Company and have a turnover in Crores, you should register for a Public
Limited Company. If you have a startup, then you should check for the other
options and choose for another Company Registration.
If you need any help regarding any kinds of Company Registration feel free to contact us our Toll Free number 180030702070, Our Business advisor will explain you in details.
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