A public limited company is the biggest class of business available in India. It’s a huge company and is formed for the purpose of raising funds from the public via IPO etc. The limit has not been set yet on the maximum number of members, even though, post 500 members, SEBI approval is required.
A public limited company relishes all the rights of a corporate body with limited liabilities and it’s a perfect selection for the small and medium scale businesses who are willing to raise the equity capital from the common people.
Here are the advantages offered to the company having public limited company registration.
The shareholders of the public company take the advantage of limited liabilities under which their personal properties are secure and can’t be taken in use to clear the liabilities and losses of the business.
In spite of it, the shareholders are accountable for their own legal wrongdoings. All the members, directors and shareholders take the advantage of this right and their individual assets remain untouched by any bank, creditors or government entities.
A public limited company is known as a corporate entity that possesses endless succession. It implies that in case of death, retirement, madness, and bankruptcy of one or more members or shareholder or directors, the company still remains into existence.
In a public limited company, the common public is invited to purchase the company’s shares. Therefore, anyone can invest in a public company that maximizes the capital of the proposed company.
Post getting a public company registration, a public company can relish unlimited sources for borrowing funds. It can issue equity, debentures and can receive the deposits from the common people by selling its shares.
Furthermore, most of the financial institutions prefer public organisations more eminent than other unregistered companies.
Since a public company can sell its shares to the common people, it reduces the scope of random risks of the market.
Lower risks result in better opportunities consequently the company can develop and enlarge by making investments in the new projects from the funds attained by selling its shares in the market.
At Careful Counting, we care about your dream consequently help you in providing the best public limited company registration process by solving every problem quickly with ease and proficiency.
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