10 Benefits of a public limited company in India
Public limited companies in India are one of the most beneficial business structures amongst the other business structure due to more transparency and credibility. Moreover, it has high financial exposure to the source capital from the public in form of deposit, debenture or equity.
Are you thinking to start a public limited company in India? Then you must know some amazing benefits of limited company registration online.
What is a public limited company in India?
Public limited companies in India are the companies whose shares issue fixed deposits or can be traded in the stock market. A public limited company can be registered with the minimum requirement of three directors and 7 shareholders and Rs. 5 lakhs minimum paid up capital. It has almost all the benefits enjoyed by a private limited company.
What are the basic benefits of public limited company in India?
1. Limited Liability:it is one of the major benefits of registering a public limited company in India. Under this all the personal assets of the directors remain safe even if the company suffers any kind of loss or financial distress. Their personal assets cannot be seized by any bank, government and creditors.
2. Never-Ending Existence: a public limited company is benefited with the never ending existence. It means even if all the shareholders or directors die the company will be continued to exist. It will never be affected with the status of the directors or the shareholders.
3. More Investments: A public limited company can sell it shares to the public which means more investment as anyone can invest in the company. It provides greater options for source value funds.
4. Fund Raising: your company can potentially raise significant funds if it is particularly appealing to the traders and public.
5. More borrowing capacity: the public limited company in India has full rights to issue debentures, accept deposits and equity. Even that, financial institutions are always positive in rendering financial assistance to large public limited company.
6. More business opportunities: a public limited company listed on exchange ensures that mutual funds, hedge funds and other valuable traders take note of the business. More interest of traders means more business opportunities on top of more capital to be gained.
7. Spreading out of the risk: more the people buys the shares from your public limited company more the risk will spread out.
8. More reliable investors: it is better to rely on more investors than relying on only one or two investors.
9. Provides more opportunity for the expansion of the business: less risk and more reliable investors provides a perfect opportunity to the business expansion and growth. Investment into new projects and products becomes easy through more shares and investments by the investors.
10. Prestige and grandeur: adding up a ‘public limited company’ at the end of your company’s name adds more grandeur and prestige to your business. A public limited company is always addressed positively by the customers, suppliers and employees.
How can Swarit advisors help you in public limited company registration?
Get your limited company registration online now with the help of expert team of SwaritAdvisors in a blink. Here are the services provided by Swarit advisors for public limited company registration:
- Get your company name reservation
- Obtain DSC and DIN for the directors of the company
- Incorporation of Memorandum Of Association and Article Of Association
- Get your incorporation certificate
- Legal advisory, legal documentation and legal formats
- PAN, TAN or GST
To know more about the valuable services of Swarit advisors or to get your registration done now, contact SwaritAdvisors at +91–9821399320 or drop a mail at ho@swaritadvisors.com.
