1. Learn

Reasons to set up a Public Limited Company

A Public Company is also known as a Public corporation which is involved in public trades and is held by the public. The ownership of a Public Company is distributed amongst the general public in multiple shares of stock, which is independently traded to various stock markets. Depending on the size of the Company these must be listed on an exchange. A Public Companies are strictly monitored, and as per the law they need to publish their accurate financial positions, which benefits the investors in determining the true worth of the shares. The moment a Company goes Public, it is answerable to the shareholders.

Why set up a Public Company?

A Public Limited Company differs from other types of companies and it is the only form of company that offers shares to the public. There are several advantages which can contribute to the reasons for setting up of a public limited Company;

  • It is listed on the stock exchange.
  • It can carry on with any form of business.
  • A Public Company can be operated anywhere in the world.
  • The liabilities of the shareholders are restricted only to their shares(limited).
  • Easily incorporated, the process of registration being simple.
  • Flexibility in choosing of name.

Related Articles