What is a Public Limited Company?
A Public Limited Company (PLC) is a corporate entity whose shares are publicly traded on a stock exchange. It has a minimum share capital requirement and is regulated by specific laws and regulations. PLCs can raise capital from the public by selling shares and are required to disclose financial information to shareholders and regulatory authorities. They often have a large number of shareholders and are subject to strict corporate governance standards.
Advantages of Public Limited Company
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Directors' personal assets are protected from limited liability
Businesses frequently need to take large risks while making investments and borrow money. In a typical partnership, partners' personal assets and savings would be at risk in the event that the company failed or could not pay back its debts. Only investments in company shares are lost in a public limited corporation; the directors' personal assets are safeguarded
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Better reputation and trustworthiness in the market
The public limited company is a well-known and often used business structure. Instead of working with sole proprietorships or traditional partnerships, public limited companies are preferred by corporate customers, vendors, and government agencies.
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Loans and capital are easily obtained
A public limited company in India has the ability to list on multiple stock exchanges and raise money through the stock market. The public, institutional investors, and bank loans are just a few of the many ways that limited companies might raise capital.
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Investors’ preferred business structure
Public limited businesses have a transparent and well-organized company structure, which attracts investors.
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Transfer of shares is easy
Most importantly, a public limited company is relatively simple to dissolve; all that is required is the transfer of business shares to the buyer together with the completed and signed share transfer documents.
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Ideal for Significant Investment
For ventures requiring significant capital, a public company is the ideal option.
Minimum General Requirements for Public Limited Company
- Atleast 7 shareholders
- Atleast 3 directors
- Any one director should be Indian
- Rupees 500,000 is the minimum amount that must be invested
- DSC for any 2 directors
- Director Identification Number of all Directors
Required Documents for Public Limited Company
- Identity Proof of the shareholders and directors
- Address Proof of the directors and the shareholders
- PAN number of the shareholders and directors
- Utility bill for the planned office, which is the company's intended registered office
- a NOC (No Objection Certificate) from the landlord in the location of the company's office
- Director Identification Number (DIN)
- Digital Signature Certificate (DSC)
- Memorandum of Association and Articles of Association