A limited company grants limited care to its owners and supervision. existence a public company permit a firm to sell shares to buyer this is profitable in bringing up capital.At least of three Directors are required for set up a Public Limited Company and it has more harsh approval requirements stand up to a Private Limited Company.
In Public Limited Companies minimum number of group members is seven and there is no hat on the maximum number of group members. A public limited company has extremely of the Feature of a private limited company. A public limited company has all the benefit of private limited company and the Capability to have any number of members, rest in shifting of shareholding and more openness. point out marks of a public limited company are meetings, directors, management, formation, shares, name and numbers of member, etc.,
Benefit of Limited Company
- Separate Legal Entity
A company is a lawful living and a juristic person accepted under the Act. thus a company form of coordination has broad legal magnitude and can own property and also bring upon oneself charges. The members of a company have no accountability to the sundry creditors of a company for such debts.
- Uninterrupted Existance
A company has everlasting sequence, that is carry on or unbroken actuality until it is lawfully go into solution. A company, living a self-contained legal person, is unchanged by the death or other egress of any member but carry on to be in being regardless of the changes in membership.
- Borrowing Capacity
A company be found superior approach for adoption of funds. It can problem debentures, secured as well as unsecured and can also receive payment from the public, etc. Even banking and economic establishment prefer to return large financial assistance to a company by preference than partnership firms or proprietary regard.
- Easy Transferability
stocks and shares of a company limited by shares are movable by a shareowner to any other person. Filing and signing a share switch form and pass over the buyer of the shares onward with share certificate can comfortably conveyance shares.
- Owning Property
A company existence a jural person, can obtain, own, like and divide, possessions in its own name. No shareholder can make any claim upon the property of the company thus endless as the company is a going care.
- Limited Liability
Limited responsibility means the rank of being lawfully in charge of only to a limited amount for debts of a company. Unlike partnerships and proprietorships, in a limited liability company the responsibility of the all members in regard of the company's debts is limited.
