Public limited company formation is almost similar to a private limited company except minimum requirement of directors and members are 3 and 7 respectively.
A limited company grants limited liability to its owners and management. Being a public company allows a firm to sell shares to investors this is beneficial in raising capital
Entrepreuner prefer to incorporate Public Limited company becasue of its many advantages, for example -
But, a Public limited company has to do few additional ROC compliances and core compliances with Stock exchange and SEBI, if it is listed. Hence the Compliance cost is higher as compare to a Private limited company & LLP.
After Company incorporation, you will receive below documents
Apart from other statutory compliances like GST, InCome Tax, etc., A Public limited company must comply below without any delay.
IF the Company is listed in recognosed stock exchange, then need to company listing agreement provisions, and all other compliances of SEBI, Stock Echanges, and ROC.
A public company can get its shares listed in a stock exchange therefore; people will be able to easily and quickly recognize the brand or name of the company. The more brand recognition a company has, the more business it will have.
As the number of shareholders is quite large, the risk borne by each shareholder is considerably low.
Easy to Raise Capital
Raising capital is much easier for a public limited company through public subscription as well as stock market (if listed)
Directors and Shareholders have no personal liabilities. Limited Liability protects the personal wealth of the shareholders and directors therefore owners will never lose more that they have invested.
Management of the company is not confined to few persons. Shareholders have powers to elect and remove directors and they can exercise control over management in general meetings of the company.
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