Registered and regulated by Companies Act 2013, a public limited company also benefits its members with limited liability. Applicable rules are more tough and stringent for a public limited company when compared with a Private Limited Company.

Benefits of a Public Limited company:

  • Unlimited succession
  • Easy borrowing
  • Limited Liability
  • Easy to raise funds for new projects
  • Easy to invite a number of investors
  • Regulatory strictness makes it more trustworthy than a Private Limited Company
  • Free transferability of shares

Checklist of documents for registration of Public Limited company:

  • ID and address proofs for Directors (min.3) and shareholders (Min. 7)
  • Address proof for registered office address
  • PAN card of Directors
  • Utility bill of all directors, not older than 2 months
  • NOC from owner of the registered office address
  • MOA and AOA
  • DSC of the Directors

Difference between a Private Limited Company and a Limited or Public Limited Company

PointPrivate Limited CompanyPublic Limited Company
Min. No. of Directors required23
Min. no. of members required27
Max. no. of members200No limit
Public OfferNoYes
Listing of shares at Stock ExchangeNot allowedAllowed
Limit on Managerial remunerationNo restrictionAs per regulations of Companies Act 2013, 11% of Net profits
NameMust have a suffix ‘Private Limited’Must have a suffix ‘Limited’
Share formatPaper/dematDemat only