Public Limited Company is a creation of law and can be incorporated as per the law and provisions of the Companies Act, 2013 and the rules made thereunder. Any seven-person can start Public Limited Company with no limitation to the number of shareholders in the company. This form of business is only for Big scale of very large and also willing to obtain money from the public at large.
1. A loan can be easily available..
2. It can be listed on a stock exchange.
3. Shares are freely transferable with ease.
The information relating to the company such as name of the Company, date of incorporation, registered office address, status of the Company are made available in a publicly searchable database i.e. MCA. This feature increases the credibility between the customer, vendors and investors.
An LLP is a separate legal entity from its partners. On incorporation it will be issued with a unique registration number, in the same way as a limited company. This registration number will stay the same throughout the lifetime of the LLP, even if the LLP changes its name.
The liability of each shareholder is limited. In simple words, a shareholder of a public limited company isn’t personally responsible for any loss or debts of the company for any amount greater than the amount invested by them; contrary to partnerships and sole proprietorships, where the partners and business owners are jointly and severally liable for the debts of the business.
An exit plan is essential for every entrepreneur to get rewarded for all their hard work. Any individual or entity can transfer or sell their shares anytime in part or whole without any restrictions.
LIt is essential for your businesses to grow quickly and limited Company have the ability to attract funding from any source i.e. angel investors, private equity firms or any other entity by way of issuing shares, transferring shares/debentures or otherwise.
In public limited Company Foreign Direct Investment is allowed upto 100% under automatic route which means any foreign entity or person can invest in company with prior approval.