A Public Limited Company is the most suitable & trusted form of business registered. Public Limited Registration is suitable for medium to large-scale businesses. At least there should be 7 shareholders and 3 directors during incorporation.
A public limited company is a separate legal entity from its owners. It can enter into agreements under its own name. It has its own separate set of rules, obligations, regulations, and legal rights.
The primary reason for going with Public Company incorporation is shareholders' limited liability. Shareholders are only responsible for the unpaid part of their shares. Promoters prefer Public companies that are aiming for listing on the stock exchange.
Shares of public companies are freely transferrable unlike in private companies. The shareholders are free to buy and sell the shares to anyone. Banks & Financial institutions also prefer this entity for loans and funding. Although there are extra MCA compliance and applicability of other rules and regulations.
A LLP is a separate legal entity. LLP partners assumes limited liability only as per the law.
A LLP is a good option to generate fundings from bank or investor against profit sharing.
As a result of getting displayed on stock market people will be able to easily and quickly recognize the brand or name of the company. The more brand recognition and capital a company has, the more business and it will have.
The most obvious advantage of being a public limited company is the ability to raise share capital from the public for growth and diversification, particularly where the company is listed on a recognized exchange.
LLP act governs the Limited liability partnership. LLP credibility is much more as compared to other unregistered entities.
The written agreements are legally enforceable meaning they are valid as long as they go by Contract Act of Indian Government under Partnership Act of 1932.
1-2 working days
3-4 working days
3-5 working days
|Sl. No.||Particulars||Private Limited||Public Limited|
|1||Minimum Paid Up Capital||No minimum criteria||No minimum criteria|
|2||Transfer of Shares||Restricted||Freely|
|4||Listing||Cannot be listed on a stock exchange & is held privately by the members.||Can be listed on recognized stock exchange and trade publicly.|
|5||Subscriber Shares||Has no right to invite public for subscription.||Can invite the general public for subscribing shares of the company.|
|6||Managerial remuneration||Cannot Exceed more than 11% of Net profits.||No restriction|
|7||Minimum Requirement||Director-Three Shareholder/Members- Two *Directors and Shareholders can be the Same person.||Director-Three Shareholder/Members- Seven *Directors and Shareholders can be the Same person.|
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