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A Public Limited Company (PLC)
is a preferred business structure for organizations aiming to operate on a
large scale and raise capital from the public. Public companies are broadly
classified into two types:
A Public Limited Company provides
limited liability to its shareholders and directors while offering
opportunities for growth, credibility, and public trust. It requires a minimum
of three directors and seven members to establish and is subject to more compliance
and regulatory requirements compared to a Private Limited Company.
Why Choose Public Limited Company Registration?
Key Highlights of a Public Limited Company
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A Public Limited Company enjoys greater recognition and
credibility in international markets, making it easier to expand globally.
Public Limited Companies can raise capital by issuing shares
to the public through stock exchanges. This access to large-scale funding is
essential for high-growth businesses.
Being a Public Limited Company improves brand equity and
public trust. It is viewed as a more reliable and transparent business
structure by investors, customers, and financial institutions.
The personal assets of shareholders and directors are
protected from business liabilities, ensuring that their risk is limited to
their investment in the company.
Unlike sole proprietorships and partnerships, a Public Limited
Company enjoys perpetual succession. This means the company will
continue is not affected by changes in management or ownership, ensuring long-term
stability and continuity.
A Public Limited Company operates as an independent legal
entity, distinct from its shareholders and directors. This ensures stability,
continuity, and legal protection.
Public companies can be listed on
recognized stock exchanges, providing visibility and improving market presence.
Listing also facilitates trading of shares, attracting more investors.
Public Limited Companies benefit from lower tax rates
compared to partnership firms. The tax structure is more favorable for growth
and expansion, and the company is eligible for various government incentives
and deductions.
A Public Limited Company has no limit on the number of shareholders, enabling easy scalability and expansion. This makes it ideal for businesses seeking growth through public investment.