Unique legal entity
As per the Companies Act, a public limited company is a separate lea entity from its stakeholders. The company has its own PAN, bank accounts, contracts, Licenses, approval assets, and liabilities. Thus, incorporating as a public limited company offers you a unique entity different from the shareholders.
Multiple routes of funding
Another advantage of incorporating as a Public Limited Company is that you can raise capital from the general public and financial institutions. Public limited companies get listed in the stock market. This allows the public to invest in the company. A public limited company can raise capital through equity shareholding, preference shareholdings, and the debentures. Thus, registering as a Public limited company opens up multiple routes for raising capital.
Quick share transfer
It is one of the biggest perks of registering as a public limited company. If you register as a public limited company, you can easily transfer your shares to other legal entities. The shareholders can transfer the shares to any individual or organization in India or abroad. You can also change the directorship of a public limited company to ensure more finance.
In a public limited company, the shareholders are provided with limited liabilities. If the company faces any unexpected liability, it will only affect the company, not the shareholders?
Attention of the peoples
Incorporation, as a public limited company, helps a company to get listed in the stock market. This ensures mutual funds, hedge funds, and other traders notice the activity of the entity. Thus, it results in better business opportunities.
Yearly docility of a Public Limited company
The yearly agreements for a listed and an unlisted Public limited company are separate. Annual compliances of an Unlisted Public limited company are;