What is Public Limited Company ?

A public limited company, also known as a PLC, is a type of business structure that offers limited liability protection to its shareholders and allows them to trade shares publicly on the stock exchange. In a PLC, the liability of the shareholders is limited to the amount of their investment in the company. PLCs are governed by the Companies Act, 2013, and require a minimum of three directors and seven shareholders. PLCs offer several advantages, including access to capital, higher credibility, global presence, and professional management. PLCs are ideal for large businesses looking to raise funds and expand their operations, and they offer a prestigious and esteemed image to customers, suppliers, and investors.

• Advantages of public limited Company :

  1. Limited liability: One of the main advantages of a PLC is that it offers limited liability protection to its shareholders. This means that the personal assets of the shareholders are not at risk if the company faces financial losses or legal claims.

  2. Access to capital: PLCs can raise capital by issuing shares to the public through the stock exchange. This gives them access to a large pool of investors and enables them to raise funds for growth, expansion, and investment.

  3. Credibility: PLCs are considered more credible and reliable than other business structures, such as sole proprietorships or partnerships. This is because they are subject to stricter regulatory requirements and are required to adhere to higher standards of corporate governance and transparency.

  4. Perpetual existence: PLCs have perpetual existence, which means that they can continue to operate even if the original shareholders or directors leave the company or pass away. This provides a sense of stability and continuity for investors, employees, and customers.

  5. Brand recognition: PLCs often have a well-known and respected brand that is recognized by customers, suppliers, and investors. This can help them to attract new business, forge partnerships, and build customer loyalty. Additionally, the ability to trade publicly can enhance a company's reputation and profile.