A Public Limited Company (PLC) is a business entity that allows the public to buy and sell shares of the
company on a stock exchange. This structure is suitable for larger companies that need to raise
substantial capital by issuing shares to the public through an Initial Public Offering (IPO). A PLC is
required to have a minimum of seven members and must comply with stringent regulatory and governance
standards set by the Securities and Exchange Board of India (SEBI) and other regulatory bodies. A key
advantage of a Public Limited Company is its ability to raise funds from a large pool of investors,
allowing it to expand rapidly and fund large-scale projects. The public trading of shares also provides
liquidity for shareholders, meaning they can easily buy or sell shares in the open market. However,
running a PLC also comes with increased scrutiny and more rigorous disclosure requirements, including
quarterly financial reports, annual audits, and shareholder meetings. Public companies are also subject
to higher corporate governance standards and must maintain transparency in their operations. Despite the
regulatory challenges, a PLC offers the opportunity to access significant capital and expand the
business, making it an attractive option for large corporations.