A minimum of seven members are required to form a public limited company. There is no restriction on maximum number of members. The shares allotted to the members are freely transferable. These companies can raise funds from general public through open invitations by selling its shares or accepting fixed deposits. These companies are required to write either ‘public Limited’ or ‘limited’ after their names e.g. ABC Limited or XYZ Limited etc.
A Public limited company have all the advantages of Private Limited Company and the ability to have any number of members, ease in transfer of shareholding and more transparency.
By following compliance public limited company can list its shares on stock exchange. Shareholders can transfer their Shares with great ease.