Setting up a business in India often involves considering a public limited company for its unique benefits and opportunities. This business structure is well-suited for larger organizations aiming to raise capital from the public through the stock market.
The concept of private limited company registration in India was type of business organization that is publicly traded on a stock exchange, allowing its shares to be bought and sold by the general public.
In summary, a public limited company is a powerful business structure that allows companies to access public capital markets, providing significant opportunities for growth and expansion, but it also comes with stringent regulatory requirements and responsibilities.
There are different types of private limited companies based on their liability and structure:
These companies are listed on a recognized stock exchange and their shares are available for trading to the general public.
These companies are public limited companies but their shares are not listed on any stock exchange.
These are public limited companies where the majority of the shares (51% or more) are held by the central or state government.
These companies are public limited companies with no government ownership. They are entirely owned by private individuals or entities.
A holding public limited company owns and controls the shares of one or more subsidiary companies, but does not necessarily conduct its own business operations.
A subsidiary public limited company is controlled by another company, known as the holding or parent company, which holds a significant portion of its shares.
These are public limited companies formed by two or more entities (either individuals or companies) to undertake a specific business venture together.
A multinational public limited company operates in multiple countries, with its headquarters in one country and branches or subsidiaries in other countries.
Memorandum of Association (MOA): Defines the company’s objectives and scope of activities.