Tax Advisor

Benefits of Public Limited Company Registration in India

A public limited company is a company where the general public participates in funding by investing their money in the company’s share or debts. Minimum 7 persons are required as a shareholder & 3 as a director (shareholder and director can be the same person if both are individual) to start Public limited company registration process. But there is no limit in the maximum number of shareholders in the company whereas the maximum director can be 15 only.

In a private limited company maximum of 200 people can be the shareholder and a single person in one person company during its business tenure. The company is registered under the Companies Act, 2013 which comes under the Ministry of Corporate Affairs (MCA) through the Registrar of Companies (ROC). The company has all the features like a private limited company with some extra benefits and obligations. All the big enterprises who are looking for public investment go for a public limited company because only under this company the public can invest and the company can take funds from the public. Once the company get registered, the company has to do all the mandatory annual compliances every year to avoid penalties and other consequences. 

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Benefits of Public Limited Company in India:

  1. Separate Legal Entity: The company has its own identity which makes it different from its directors and shareholders. The company can possess properties on its own name, properties include moveable, immoveable as well as intellectual (Trademark registration, patent, design, etc.)
  2. Limited Liability: Although the company has large public involvement still the liabilities of shareholders and directors are limited. They will not personally be liable for any debt or loss which is borne by the company.
  3. Right to Transfer: The shareholder of the company has the right to transfer their shares freely to anyone. There is no restriction on the transfer of shares.
  4. Perpetual Succession: The company exists until a closure application is made to the registrar, the death or insolvency of the shareholders and directors doesn’t affect the life of the company. 
  5. Unlimited Members: There is no maximum limit in the number of members in the company whereas in the private limited company it is restricted to 200 and in OPC it is restricted to only one.
  6. Borrowing Capacity: The public limited company has better borrowing capacity as it can raise funds from a large number of publics by issuing shares and debts, there is no restriction on the number of investors and number of investments.
  7. Share Trading Facility: The government has provided a platform where the investors/ Shareholders can trade (buy or sell) shares of the company without any problem and restriction. 
  8. More Creditability: The public companies have more creditability in comparison to other companies because the government bodies like MCA, SEBI, Stock Exchange, RBI, etc. look into the matters of the company and has a complete record of the company.
  9. Better Management: Although the company has a large number of investors and shareholders, the management is controlled by a small group of persons which are known as the Board of Directors and the decision is always taken for the benefit of the investors and companies.

There are many other benefits that are available under a public limited company so if anyone is looking for the expansion of their business and ready to take funds from the public then the public limited company is the best option for them, and to get it registered without any hassle Call us on +91 9990689333 or visit our website at