1. Separate Legal Entity

• A Public Limited Company is recognized as a distinct legal entity.
  
• It can own property, enter into contracts, and sue or be sued in its name.
  
• The existence of the company is independent of its shareholders.
  
• It continues to operate even if the ownership or management changes.
  
• This feature ensures business continuity and legal protection.
  

2. Limited Liability

• The liability of shareholders is limited to the amount unpaid on their shares.
  
• Personal assets of shareholders are not at risk for company debts.
  
• Creditors cannot claim more than the value of shares held.
  
• This encourages public investment without fear of excessive risk.
  
• Liability structure increases trust and promotes business security.
  

3. Number of Members

• Requires a minimum of 7 shareholders to be registered.
  
• There is no maximum limit on the number of shareholders.
  
• A minimum of 3 directors is also required for governance.
  
• The broad member base allows for wide public participation.
  
• Shareholding can change without affecting the company’s structure.
  

4. Share Capital and Transferability

• Shares are freely transferable unless restricted by law or regulation.
  
• The company can raise capital by issuing shares to the public.
  
• Public issue of shares is done through an IPO or FPO.
  
• Shareholders can trade shares on recognized stock exchanges.
  
• Capital structure is flexible to meet funding needs.
  

5. Regulatory Compliance and Transparency

• Governed by the Companies Act, 2013, and SEBI regulations.
  
• Must file annual reports, financial statements, and disclosures.
  
• Requires regular board meetings and annual general meetings.
  
• Statutory audit and appointment of independent directors are mandatory.
  
• Compliance ensures accountability and boosts investor confidence.