What is a Public Limited Company?

A Public Limited Company is registered as per provisions prescribed under the Companies Act, 2013. The member of a Public Limited Company enjoys the feature of Limited Liability. Moreover, this business structure is allowed to raise capital from the Public by issuing shares in return. Further, a minimum of three directors and seven members are required for the public limited company registration. The definition of a PLC is also provided under section 2(71) of the Companies Act, 2013. According to Companies (Amendment) Act, 2015, no minimum amount is required for the registration of a Public Limited Company. Further, the rules and regulations of a Public Limited company are more rigid and strict in comparison to Private Limited Company. Still, it is considered as a better form of doing business than a Private Company. The reason for the same is that this business structure not only provides the benefits of a Private Company but also has features like easy transferability of shares and ownership, etc. A subsidiary company for the purpose of a Public Limited Company Registration shall also be deemed to be a public company, even if the subsidiary company remains listed as a private company in its Articles.