Public Limited Company

  • July 3, 2023
  • Posted by: Jain R S and Associates
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A Public Limited Company has more transparency in business in comparison to other type of business entities. This company is formed by 7 members and 3 directors. According to the rules prescribed in the Companies Act 2013 the company can issue shares to public and accept deposits from public. The stock of these companies can be easily acquired either privately or through initial public offering (IPO) or by trading in the stock market. Public limited company is strictly regulated by the rules of the Companies Act 2013 and the company should show its true financial status to the shareholders.
Many businesses choose to incorporate a company limited by shares rather than a sole proprietorship, partnership, LLP or company limited by guarantee. Do remember that companies limited by shares are primarily set up as private limited companies. This article looks at the advantages and disadvantages of a public limited company. We have tried to provide a proper evaluation of the advantages and disadvantages of a public limited company is given here for an existing private limited considering to convert to a Pvt ltd company.

If you’re not sure about your business entity type, we’d strongly suggest you speak to our tax experts, who can give you detailed information and advice that takes account of your circumstances. For Public Limited Company Registration, a minimum of 7 and  Maximum of 50 Shareholders. Among these shareholders minimum 3 have to directors at all times. 10 Lakhs of Paid-up Capital is required. A Public limited company enjoys all the advantages of a Private Limited Company and have any number of members, ease in transfer of shareholding and more transparency. Public Limited Registration is done through Jain R S and Associates.

A public company as per Section 2 (71)-

👉 A company which is not a private company.

👉 A company whose minimum paid up capital is ₹5,00,000/-

👉 The company being  subsidiary of a company, which is not being a private company it shall be a public company for the purposes of the act