Public Limited Company
As the name reveals, a public limited company has a wider coverage than a private limited company. It is generally called a 'Public Company'.
Generally, companies requiring huge capital investment from a large base of shareholders are opting for registration as a Public Limited Company.
A 'Public Company' is an incorporated business entity registered under the Companies Act, 2013, with the following features:
- Minimum number of shareholders is 7. There is no restriction on maximum number of shareholders.
- Minimum number of directors is 3. The proposed director must have a DIN allotted by the Ministry of Corporate Affairs, Government of India.
- A public company can issue shares to public subject to the compliance of the Companies Act and other regulations.
- A public company can accept deposits from public subject to the compliance of the Companies Act and other regulations.
- Operations of public limited companies are subject to compliance of many restrictive provisions of the Companies Act.
Typically, large-sized businesses and/or stock exchange listed entities are incorporated as Public Companies.
