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Public Limited Company

A Public Limited Company is a Company limited by shares in which there is no restriction on the maximum number of shareholders, transfer of shares and acceptance of public deposits. To incorporate a public limited company minimum of seven shareholders and three directors are required. Minimum of five lakhs authorised capital is required to form a limited company in India. A public limited company is not authorized to start business upon the grant of the certificate of incorporation. In order to be eligible to commence business as a corporation, it must obtain another document called trading certificate.

Limited Company has more stringent regulatory requirements compared to a Private Limited Company. Public Limited companies can raise funds from general public through open invitations by accepting fixed deposits and selling its shares.The liability of each shareholder is limited to the extent of the amount of shares subscribed. However, the liability of a Director / Manager of such a Company can at times be unlimited.

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