A limited company grants limited liability to its owners and management. Being a public company allows a firm to sell shares to investors this is beneficial in raising capital. A minimum of three Directors and seven shareholders are required for establishing a Public Limited Company and it has more stringent regulatory requirements compared to a Private Limited Company.
There is no cap on the maximum number of members in a Public Limited Company as compared to a Private Limited Company where the maximum limit of members is two hundred. A public limited company has most of the characteristics of a private limited company. A public limited company has all the advantages of the private limited company and the ability to have any number of members, ease in transfer of shareholding and more transparency. Identifying marks of a public limited company are name, number of members, shares, formation, management, directors and meetings, etc.,