Choose Your Plan
A public company is a corporation whose ownership is open to the public. In other words, anyone can buy the shares of a public company. There are no restrictions to the number of members of a public company or to the transferability of shares. It should have at least 7 members and 3 directors.
It has required more stringent regulatory requirements as compared to a Pvt. Ltd Company.
- More Capital: Shares are offered to the general public at large i.e. anyone can invest in a public limited company. Hence, improves the capital of the company.
- More attention: Being listed on a stock market ensures that mutual funds, hedge funds and other traders take note of the business of the company. This may result in better business opportunities for the Public Limited Company.
- Spreading risk: Since the shares are sold to the public at large the unsystematic risk of the market is spread out.
- Growth and expansion opportunities: 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.