Public Limited Company
A Public Limited Company has more transparency and credibility in business than Private Limited. Public limited company always preferred if you have a broad vision from startup to IPO.
Public limited company can fulfill its capital requirements from Public as Equity or debenture or deposit.
PA public limited company can have unlimited members / Share Holders. Shares can be sold openly and offer more transparency for shareholder lenders, creditors, and bankers.
Features
A public company shall have minimum 7 members and 3 directors. Every private limited company which has a subsidiary of public company shall be treated as public company in the eyes of law. The Liability of each member or shareholder of a public company is limited.
Advantages
Better Access to capital - raising share capital from existing or new investors.
Liquidity- Shareholders can buy and sell their shares if they are quoted on the stock exchange.
Disadvantages
The Company can be expensive to establish, maintain and wind up. The reporting requirements can be complex and if the directors fails to meet their legal obligations, they may be held personally liable for the Company's debts.