Many times business need to borrow money and take high investment decisions. Public Ltd. Company is the best option for entrepreneurs with larger investment requirements. In case of normal Partnerships, Partners personal savings and property would be at risk incase business is not able to repay its loans or business goes into loss. In a Public limited company, only investment in shares of the business is lost, personal assets of the directors are safe.
Public limited company is popular and well known business structure. Corporate Customers, Vendors and Govt. Agencies prefer to deal with Public Limited Company instead of proprietorship or normal partnerships.
Public Limited company can list itself in various stock exchanges in India and raise capital from stock market. Limited company also enjoys wide options to raise funds through bank loans, general public and Institutional investors.
Investors love to invest in Public Limited companies as it is well structured and transparent business structure.
Most important it is very easy to exit from a Public limited company, only shares of the company need to be handed over to the purchaser along with the signed share transfer forms.
Public Company is the best choice for businesses involving heavy investment.
