A Public Limited Company is a type of business entity that offers limited liability protection to its shareholders and management team. It has the advantage of being able to sell shares to investors, which can be beneficial in raising capital for the business. To establish a Public Limited Company, a minimum of three Directors are required, and there is no cap on the maximum number of members. However, it is subject to more stringent regulatory requirements compared to a Private Limited Company.
Despite being different from a Private Limited Company, a Public Limited Company shares many characteristics with it. It offers benefits such as ease of transferability of shares, borrowing capacity, limited liability protection, and perpetual existence. Like any other company in India, a Public Limited Company must be registered in accordance with the rules and regulations of the Companies Act.
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