What is Public Limited Company Registration?

Shares are freely traded by the public and the organization registered as a public limited company uses letters “ltd” or “limited” after its name.

These organizations are also A public limited company can be listed on the stock exchange.

If a private ltd company want to get listed in stock exchange then it has to get converted to public ltd first known as publicly held companies. before starting the listing process.

When promoter wants to incorporate a company as public limited, it must follow the procedures as prescribed by the Ministry of Corporate Affairs of India.

Minimum Requirements to form a Public Limited Company

• Minimum capital requirement for a public limited company is Rs. 5, 00,000
• Minimum number of members or shareholders required is 7 (seven)
• Must have minimum number of at least 3 directors – The Director needs to be over 18 years of age and must be a natural person. There are no limitations in terms of citizenship or residency

Advantage of Public Limited Company

• Shares of a public limited company are freely transferable and no need to take any one’s consent for such transfer.
• The liability is limited to the face value of the shares the shareholder’s own.
• Shareholders do not have the right to participate in the day to day management of the business.
• Can have large amount of capital

Disadvantage of public Limited Company

• More legal formalities to follow
• Strict control and regulations to comply.
• May face management problems such as slow decision making and industrial relations problems.