The Public limited company is registered as per Companies Act, 2013 and rules made thereunder and it is a separate legal entity which can offers its shares to be traded on stock exchanges for public. Public Limited Company enjoy all the rights of a corporate entity with limited liabilities for its members and has rights to sell its shares for raising the capital of the company. However, it has to be differentiated from a private Limited Company. Public Company must have minimum number of three directors and seven members. Unlike Private Limited Company, there is no limit on maximum number of members of the Public Company.
As Compared to Private Limited Company, Public limited company has more stringent rules and regulations. On the other Part, a Public Limited Company has many advantages than private limited company and it is considered as better form of Business due to its features like easy transferability of shares and right of ownership and also raise fund from public by issuing shares through Initial Public Offer (IPO).
Public Limited Company is beneficial as the shares can be transferred easily, the Company have increased Borrowing Capacity, It’s a Separate Legal Entity, Shares can be listed in Stock Exchange.
Eligibility Criteria for Public Limited Company Registration
Directors: Minimum three Directors are required and one must be a resident of India.
Shareholders: Minimum Seven Members are required who can become directors or shareholders or both.
Unique Name: The Company shall have a unique name which shall not be similar to the existing company registered in India and the name shall not similar to any registered or applied trademark in India. All the Public limited companies must add “Limited” word at the end of their name. it is denoted as an identity of a public company.