PUBLIC LIMITED COMPANY
Public Limited Company is that type business entity whose share can be traded publically via stock exchange, but whose liability is limited. If Public Limited Company plan to raised fund from general public than company can go for Initial Public Offer as they have got some special right under securities laws to access capital market. It can take loan in the form of Foreign Direct Investment (FDI) and can also raise Capital by providing Shares against it. It can also provide Stock Ownership by issuing ESOP to its Employees.
If you want to Register your Public Limited Company HMJG LEGAL E-SERVICE INDIA PVT LTD will help you in Company formation and in all the Compliance after Company registration.
ADVANTAGES OF PUBLIC LIMITED COMPANY
As the Involvement of the Number of member is not restricted upto 200 as compare to private limited Company the Public limited Company can raise more Capital.
Death and insolvency of any of the member does not affect the continuity of the company. Thus the life of its members does not affect the company. Person can become member or even can leave the organization. Transfer of share can not affect the company.
Company can accept Deposit from the public, can issue Secured or unsecured Debenture, even Bank and Financial institute prefer to provide Loan to the Public Company rather than any other type of Company or Partnership Firm or Proprietary Concern.
The liability of the shareholder is limited upto unpaid subscription money in his name and the personal Asset does not get affected by it unlike Sole proprietor or Partnership Firm.
SHARE OF THE COMPANY ARE FREELY TRANSFERABLE
Investors are not Bound to be attached with the Public Company as the shares are in the Liquid form it can be transfer as and when required.
Shareholder do not have the right to particular in the day to day management of the business.