Public limited company formation is almost similar to a private limited company except minimum requirement of directors and members are 3 and 7 respectively.
A limited company grants limited liability to its owners and management. Being a public company allows a firm to sell shares to investors this is beneficial in raising capital
Entrepreuner prefer to incorporate Public Limited company becasue of its many advantages, for example -
- Can raise fund by issue of share to public.
- Option to get listed in recognised stock exchanges in India and issue IPO
- Shares are freely transferable without any restriction
- There is no limitations of no. of member/shareholders
But, a Public limited company has to do few additional ROC compliances and core compliances with Stock exchange and SEBI, if it is listed. Hence the Compliance cost is higher as compare to a Private limited company.