According to the Company Act of 2013, a Public Limited Company is a carefully regulated business with limited liability that offers shares to the general public. Anyone can purchase its stock via trades on the stock market or privately through (IPO) initial public offering. It is also advisable for a public company to be financially transparent to the shareholders. Examples of public limited companies include BHEL, Barclays, etc.
This type of business structure is suitable for large-scale business operations. A minimum of seven members are required to start a public company while there is no maximum limit whatsoever. Similarly, a minimum of 3 directors is required. A public limited company must have a minimum paid-up capital of Rs 5 lakh or such a higher amount as prescribed under the act.
The list of documents for incorporation is quite similar to Private Limited. With the SPICe+ form, one can successfully apply for company incorporation along with requisite documents and prescribed fees.
A company incorporated as a Public Company Limited can be listed or unlisted. Listed companies are companies that have some of their securities listed on a recognised stock exchange. In contrast, Unlisted companies have no securities listed on any stock exchanges. The incorporation process is the same irrespective of whether they are listed. However, the post-incorporation compliances can differ in each case.