What is a public limited company?
A public limited company is a type of large business that has offered shares to the general public and has limited liability. Its shares can be acquired by anyone, either privately, during an initial public offering, or through trading on the stock market. For the business, that means shares can be sold to investors to raise capital to pump into the firm.
Strictly regulated, such shares can be listed or unlisted on a stock exchange, with the company needing to publish their finances on a regular basis so that shareholders can determine the true worth of their stock.
Advantages of Public Company Registration
- Limited Liability of the shareholders
In Public Company registration, the liability of the shareholder and Directors is limited to the extent of the shares they hold in the company. For example, if the company suffers from any financial contingencies because of primary business activity, then in such case personal assets of shareholders and Directors will not be snatched by the Banks, creditors, and government.
- Raising the capital through Public Issue
In the case of Public Company Registration, the proposed company can raise funds through the Public.
- Separate Legal Entity
Shareholders and Directors may come and go, but the existence of the company continues to exist. i.e. the absence or movement of any shareholder in the company will not affect the existence of the company.
- Unlimited source of raising fund
The company has an unlimited source of raising fund through Public which results in pursuance of new projects and for capturing the new market
- Easy Transferability
The shares of a public limited company are easily transferable. Shares of the company are listed on a stock exchange; the shareholders find it is easy to transfer the share in the company. In the case of Public Company Registration, shareholders are less bound to remain with the company, which results in making people more willing to invest.
- Maintains the Transparency
Because of Public involvement, the company publishes its statutory details and reports to maintain greater transparency and also to provide accurate information of its current financial position.
- Maintains the Brand Position
Being registered as a Public Company, it improves the brand position of the Company. Listing the shares of the company in the stock exchange enhances the brand position and reputation of the company.
Disadvantages of Public Company Registration
- Lack of Flexibility
Flexibility always acts as strength to every organization, but in the case of the public company, there is no such advantage. Every public company is bind by the rules and regulations, which results in a lack of flexibility in its operations.
- Lack of secrecy
To maintain the transparency and trust of the shareholders, the company provides full disclosure to the public due to which secrecy cannot be maintained. The Public is involved in decision making, the company cannot maintain the secrecy.
- Suitability
A public limited company is only favourable to large scale a business which is a disadvantage to small scale industries.
- High Costs
Registering the company as a Public Company requires a huge cost. To start a public company huge investment, time and procedural things are required to be complied with. The profit of the company depends upon the investment you have done.
PROCESS OF ONE PERSON COMPANY REGISTRATION
- Free Consultation
- E-Mail Documents
- Make Payment
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Get Your Certificate
DOCUMENT REQUIRED FOR ONE PERSON COMPANY
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IDENTITY PROOF AADHAR CARD/DRIVING LICENSE/ELECTION CARD
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ADDRESS PROOF OF BUSINESS/ELECTRICITY BILL/RENT AGREEMENT
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PAN CARD
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PASSPORT SIZE PHOTO