Public Limited Company
A Public Limited Company (PLC) is a separate legal business entity which offers its shares to be traded on the stock exchange for the general public. According to the regulations of the corporate law, a PLC has to compulsorily present its financial stats and position publicly to maintain transparency.
A Public Limited Company is strictly regulated and is required to publish its true financial health to its shareholders.
Apply for DSC
File for Reservation of Name
Apply for Incorporation
Prepare all Legal Documents
Prospectus
Characteristics of Public Limited Company
Members
To start a company, a minimum number of 7 members are required. There is no maximum limit to the number of shareholders. This allows a Public Company to raise Capital from general public and to be listed on a recognised stock exchange
Limited Liability
The liability of each member or shareholders is limited. It means that if a company faces loss under any circumstances then its shareholders are not liable to sell their own assets for payment. The personal, individual assets of the shareholders are not at risk. The Liability of the Shareholders is limited to the extent they have Invested in the Company
Perpetual succession
The company keeps on existing in the eyes of law even in the case of death, insolvency, or bankruptcy of any of its members. This leads to the perpetual succession of the company. The life of the company keeps on existing forever.
Paid-up capital
Minimum Paid up Capital of Rs. 5,00,000 is required to register a public limited company, unlike a Private Limited Company which can be started without any minimum capital.
Prospectus
A prospectus is a comprehensive statement of the affairs of the company issued by a public limited company for its public and there is a requirement under the Act for public limited companies to issue a prospectus.