A Public Limited Company, or PLC, is a legal corporate entity that is allowed to trade its shares with the general public. Anyone can buy a PLC's issued shares through an Initial Public Offering (IPO) or stock market trading. According to the law, PLC must disclose its financials and corporate status to the general public.
The choice of business entity is a critical decision with long-term consequences for the company's performance. In India, a company limited by shares is one of the most common legal entities in the business sector. Start-ups, growing companies, and mid-sized businesses prefer private limited companies (PLC) due to their flexibility in raising funds, limited liability, and ability to offer employee stock options. The Companies Act 2013 and its guidelines allow for the formation of a private limited company.
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