A public limited company (PLC) is the designation of a limited liability company (LLC) that has offered shares to the general public and has limited liability.
A company whose securities are traded on a stock exchange and can be bought and sold by anyone. Public companies are strictly regulated, and are required by law to publish their complete and true financial position so that investors can determine the true worth of its stock (shares). Also called publicly held company.
Shares are offered to the general public at large i.e. anyone can invest in a public limited company. Hence, improves capital of the company.
Being listed on a stock market ensures that mutual funds, hedge funds and other traders take note of business of the company. This may result in better business opportunities for the Public Limited Company.
Since the shares are sold to the public at large the unsystematic risk of the market is spread out.
Due to less risk, there is a perfect opportunity for growing and expanding the business by investing in new projects from the money raised through shares.
There are various rules and regulations prescribed under the companies act, 2013 for the formation of a public limited company. Here is what you should keep in mind when registering a public limited company: