A limited company grants limited liability to its owners & management in which its belong. Being a public company allows a firm to sell shares to investors this is beneficial in raising capital. it has required more stringent regulatory requirements as compared to a Pvt. Ltd Company.
A Public Ltd Company has almost all the characteristics of a private limited company. A Public Limited Company, in addition to the steps followed by a Private Limited Company has to obtain a certificate of Commencement of Business before they can commence the business.
A Public Limited Company is defined under Section 2(71) of the Companies Act, 2013 as:
a company which is not a private company
a company with a minimum paid-up share capital of INR 5 lakhs.
Note : Under the Companies Act, 2013, a subsidiary company shall be deemed to be a public company if it is not a subsidiary to a private company, even if it is a private company as per its articles.
