A Public Limited Company is a type of business structure that allows a company to raise capital by offering its shares to the general public. Governed by the Companies Act, 2013 in India, it enjoys a separate legal identity, limited liability for its shareholders, and has the ability to list its shares on a stock exchange, making it ideal for large-scale businesses seeking public investment and greater transparency.

Key Features of a Public Limited Company:
1. Separate Legal Entity
A public limited company is distinct from its owners. It can own assets, incur liabilities, sue or be sued in its own name, ensuring continuity and independence.

2. Limited Liability
The liability of shareholders is limited to the amount they have invested in shares. Their personal assets remain protected, even if the company faces financial distress.

3. Raising Capital from the Public
One of the major advantages is the ability to raise funds by issuing shares, debentures, or bonds to the public through stock exchanges. This access to capital supports business expansion, research, and development.

4. Minimum Requirements
Minimum Shareholders: 7

Minimum Directors: 3

Minimum Paid-Up Capital: ₹5 lakh (as per latest provisions)

Mandatory Compliance: Needs to follow extensive regulatory filings, disclosures, and audits.

5. Transferability of Shares
Shares of a public company are freely transferable. This provides liquidity to shareholders and flexibility for investors.

6. Perpetual Succession
The company continues to exist even if directors or shareholders change due to resignation, death, or transfer of shares.

Benefits of a Public Limited Company:
Access to Large Capital: Funding through public subscription enables massive growth opportunities.

Brand Recognition & Credibility: Being listed on the stock exchange enhances visibility, trust, and market reputation.

Expansion Opportunities: With better financial backing, companies can easily enter new markets and scale operations.

Professional Management: Ownership is separate from management, ensuring a structured and transparent decision-making process.

Disadvantages/Considerations:
Heavy Compliance Burden: Public companies are subject to strict regulatory norms and must file regular disclosures with ROC and SEBI (if listed).

Lack of Confidentiality: Financial and operational information becomes public.

Costly Setup and Maintenance: Incorporation, listing, and compliance can be expensive and time-consuming.

Ideal For:
Large enterprises looking to scale

Businesses seeking funding through IPOs

Companies aiming for public trust and greater transparency

Incorporation Process:
Obtain Digital Signature Certificates (DSC) & Director Identification Numbers (DIN)

Name Approval via RUN (Reserve Unique Name)

Drafting of MOA & AOA (Memorandum and Articles of Association)

Filing for Incorporation with ROC (Registrar of Companies)

Certificate of Incorporation Issued

Apply for PAN, TAN, and Bank Account

Commencement of Business Certificate (if applicable)