Public Limited Company also called public corporation or widely held company is a type of legal business entity which can be incorporated by seven or more persons. There is no limit for maximum number of members i.e., shareholders in such type of companies. Further these companies can invite capital and deposits from the public. There is no minimum requirement of capital to be invested at the time of incorporation of the company. Any amount of share capital can be invested as per the will of the Promoter/Shareholders. These companies shall have minimum three directors and seven shareholders.
Registration of Public Limited Company make more prestigious profile, greater access to capital and the ability to be able to advertise and sell your shares to the public. Many entrepreneurs Incorporate a Public Limited Company so that they will be able to sell shares to the public through a Stock Exchange and get investment for the company. Public company can be listed as well as unlisted. Listed public can issue shares through an initial public offering (IPO), can be traded on stock exchanges.In real terms, the benefit here is that if you are a shareholder in a major firm that gets sued, the payoff can only come out of the cash that belongs to the firm itself. In paying off debts, for example, the company is only obligated to pay out of its own resources, not the personal resources of its shareholders. The shareholders, at least the major ones, met regularly and, among other things, hire its management.