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A Public Limited Company is also the most popular form of business entity used for Indian and Foreign Investors in India (including USA investors in India).

A public limited company is a voluntary association of members which is incorporated and, therefore has a separate legal existence and the liability of whose members is limited.

It consists:

It must have at least seven shareholders.

A public company is not authorized to start business upon the grant of the certificate of incorporation. In order to be eligible to commence business as a corporation, it must obtain another document called “trading certificate”.

It must publish a prospectus or file a statement in lieu of a prospectus before it can start transacting business.

A public company is required to have at least three directors.

It must hold statutory meetings and obtain government approval for the appointment of the management.

 

Advantages of a Public Limited Company

1. Shares can be advertised

2. Shares can be sold through the stock exchange

3. Large Public Limited Company may find it easier to borrow from banks

4. Shareholders have limited liability

5. Cheaper borrowing and bulk purchasing

 

Disadvantages of a Public Limited Company

1. Going public can be expensive

2. Some PLC’s can grow so large that they may become difficult to Manage effectively

3. Risk of takeover by rival companies who have bought shares in the company

 

To start Public Limited Company in India just fill this form:

 


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