What is a public limited company?

A company registered under the Companies Act (1980), with statutory minimum capital requirements and shares offered to the public subject to conditions of limited liability is public limited company and A private limited company, or LTD, is a type of privately held small business entity.

Advantages of a Public Limited Company

  1. The shareholders have limited liability.
  2. A company can raise additional capital by issuing more shares or debentures.
    Greater borrowing power.
  3. A board of directors with experience/ expertise can be appointed.
  4. Shareholders can sell/transfer their shares freely.