Public Limited Company Registration in India can be initiated with a minimum of three Directors who are individuals (up to a maximum of 15 directors without Special Resolution), and seven subscribers (shareholders) who may be Individuals or corporate entities. Both, the directors and subscribers may or may not be the same person. The Companies Act 2013 does not set any minimum capital limit, so the minimum capital can even be Re 1 per shareholder. A public limited company has features like separate legal entity which enables it to be distinct from its members and directors. The members hold a limited liability in the company and cannot be held liable beyond the shares held by them.
Public Company Registration is initiated primarily if the shareholders/investors are large in number. The shares of a public limited company can be transferred with ease and ensuring a suitable structure for raising capital. Before initiating registration of a public company, one needs to be aware of more stringent regulatory requirements as compared to other corporate entity forms.
Liability of the shareholders of a public company is restricted to the capital invested in the company, and hence shareholders are not personally liable. It is a legal entity which is distinct from its shareholders and directors. It can own assets and liabilities in its own name.
A public limited company has an exhaustive structure of rules and regulations to be followed, i.e. provisions of Companies act 2013, listing agreement (for listed companies), along with notifications, circulars, and orders issued by the government from time to time.
Public Limited Company registration is initiated primarily if the capital invested is huge or if the number of shareholders is large. Since the investment is made open to the general public, such structure requires strict compliance management.
Shares of a public limited company can be traded freely by the shareholders, and even online trading is possible for listed companies. A public limited company is preferred by both retail and institutional investors for investment, due to easy availability and transferability of shares.