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A Public limited company grants limited liability to its owners and management. Being a public limited company allows a firm to sell shares to investors this is benificial in raising capital. A minimum of three Directors are required for establishing a Public Limited Company and it has more stringent regulatory requirements compared to a Private Limited Company. Public Limited Companies are those types of companies where minimum number of members is seven and there is no cap on the maximum number of members. A public limited company has most of the features of a private limited company.

The reason behind the choice to be a public limited company is the ability to raise funds from the public and for shares to be freely traded. A public limited company is a voluntary association of members, which is incorporated and, therefore has a separate legal existence and the liability of whose members is limited.

The features of a Public Limited Companies are separate legal existence apart from its members, Its formation, working and its winding up, in fact, all its activities are strictly governed by laws, rules and regulations. A company must have a minimum of seven members but there is no limit as regards the maximum number, The Company collects its capital by the sale of its shares and those who buy the shares are called the members. The amount so collected is called the share capital, Shares of a company are freely transferable, The liability of a member of a company is limited to the face value of the shares owns. The shareholders of a company do not have the right to participate in the day-to-day management of the business of a Company, separation of ownership from management, The power of decision making in a company is vested in the Board of Directors, As a company is an independent legal person, its existence is not affected by the death, retirement or insolvency of any of its shareholders.