Public companies have inherent advantages over private companies, including the ability to sell future equity stakes and increased access to the debt markets. A Public Limited Company is Incorporated and Governed by the Indian Companies Act 2013. Public Limited Company is a Purely Separate Legal entity distinct from its members and directors. It has the advantage of limited liability, greater stability and recognition. The Basic Requirement for a Public Limited Company in India is to have Minimum Three Directors and Seven Shareholders.
- Public Companies can issue shares to the public through the stock exchanges or stock market.
- These can also raise additional capital by issuing debentures and bonds from the public on the basis of their financial performance.
- These are commonly known as publicly traded companies or publicly held companies.
- Shares of these companies are freely transferable that provides more liquidity to its shareholders.