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Public Limited Liability Company

Public limited company is a public listed company which can issue its shares to general public in order to raise capital for business operations. There are different set of rules and regulations are applied for public limited company incorporation and registration. Public limited company is often called as a limited company or government undertaking unit as per the rules and regulations. A public limited company must have seven as minimum members and there are no limits for maximum shareholders as per the Company Registration Act in India. Indian Company Registration Act 1956 has defined company as an association or group of individuals operate a business enterprise in order to make profits. Public limited company has many advantages over private limited company because this type of company is large in size in terms of capital and people than any other form of companies. Public limited companies have been existing since a long time ago by some leading business entrepreneurs for the purpose to explore massive opportunities.

Public Limited Company Advantages

Public limited companies have certainly many added advantages over its peer private limited companies in many factors. Public limited company in India is absolutely enjoys more public recognition and social acceptance as compared than private limited companies.

Here, we are giving the complete list of advantages of a public limited company:
  • Perpetual Existence: A public limited company must continue its business operations irrespective of its many internal and external obstacles and that makes this business is hot favorite among all.
  • Large Amount Of Capital: The most important factor or advantage is the large amount of capital this company has as compared than private limited company. A public limited company can boost its capital base by issuing shares to public whenever it requires.
  • Excellent Management: A public limited company has a well managed board of directors and management team those are almost experts in managing the whole business operations of a company. It has competent employees and active shareholders compared than private company.
  • Transferable of Rights: The voting right of a shareholder or a member can be transferable in a public limited company.
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