A Public Limited Company under Company Act 2013 is a company that has limited liability and offers shares to the general public. Its stock can be acquired by anyone, either privately through (IPO) initial public offering or via trades on the stock market. A Public Limited Company is strictly regulated and is required to publish its true financial health to its shareholders. Minimum Shareholder 7 and minimum director 3 are required to form a Public Limited Company.

ADVANTAGES OF PUBLIC LIMITED COMPANIES:

More Capital i.e. Shares can be issued to General Public for raising funds.

More attention i.e. more business opportunities for Public limited company due to listing of shares on public domain.

Spreading risk i.e. since share are sold to public at large this may result into spreading of risk from few people to large number of people.