Public limited company
Advantages of Public limited company
An incorporated company has perpetual succession. Perpetual Succession means the company shall continue to exist even if the member dies or ceases, etc. Public Limited companies are not affected by the status of their owner when it comes to their existence. Changes within the management does not bring any affect to the identity of the company, the Company will remain the same with same privileges, immunities, estates and possessions. The Company shall continue to exist till its wound up in accordance with the provisions of the relevant law. Death or inability to continue of owner does not hinder the proceedings of the company.
No Minimum paid-up capital:
The Companies Amendment Act, 2015 has come up with an amendment that there no minimum capital requirement for starting a public limited company. the words “of five lakh rupees or such higher paid-up share capital” has been removed which pertains to the minimum paid up share capital of the company. So a public limited company can start its business without any amount of minimum capital restriction.
The public limited company enjoys the benefit of limited liability. The liability of the company is different as from its members of a company. Liability for debts incurred by the company lies in the company itself and not on the members. If anything happen to the company, its members are personally affected.
Better access to capital:
Public companies are more access to capital i.e. public companies can raise capital from existing and new investors. This is because the shareholders of the public companies are generally the public. Public companies have the ability to raise the large amount of capital.