Under Section 2(71) of Companies Act,2013, company that has Limited Liability and offers shares to the general public. The Main object of the public limited company will be to increase its profit in order for the shareholders. The minimum 3 Directors and 7 Shareholders are required and no restriction on the maximum number of Shareholders. Required Minimum 5 Lac Paid up capital for incorporation of public limited company. Such company has to issue shares in DMAT form only. That’s why the operating cost of public limited company is more than Private Limited Company. In general circumstance the organization having more than 200 shareholders, is recommended to go for public limited company.
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