Advantages and Disadvantages explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Thinking of choosing a Public Limited Company? Here are its key advantages and disadvantages.
Advantages of a Public Limited Company
- Can raise capital from the public
- Limited liability and perpetual succession
- High credibility and easy transfer of shares
Disadvantages of a Public Limited Company
- Heaviest compliance and disclosure burden
- Minimum 7 members and 3 directors
- Greater regulatory scrutiny
Is a Public Limited Company right for you?
Public Limited Company suits businesses that value can raise capital from the public. Weigh this against the trade-offs above and your funding, liability and compliance appetite.
Public Limited Company — quick facts
| Entity | Public Limited Company |
| Liability | Limited |
| Registration cost | ₹15,000 – ₹40,000 |
| Taxation | Taxed at the corporate rate (plus surcharge and cess), same as other companies |
Choosing the right business structure
Your entity choice affects liability, tax, fundraising and compliance. Proprietorships and partnerships are simplest but carry unlimited liability; LLPs and companies offer limited liability, while a private limited company is best for raising equity. Trusts, societies and Section 8 companies suit non-profits. Pick the structure that matches your goals for growth, funding and risk.
More on Public Limited Company
- Public Limited Company — Registration: Process & Cost
- Public Limited Company — Cost of Registration
- Public Limited Company — Documents Required
- Public Limited Company — Annual Compliance
- Public Limited Company — Compliance Checklist
- Public Limited Company — How to Close
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