A PLC is a company that can issue shares in the stock market to raise capital from the public. It is a legal entity with a separate identity from its shareholders and has limited liability protection. The registration process for a public limited company involves obtaining the necessary documents, including the Memorandum and Articles of Association, and filing them with the Registrar of Companies.
The importance of public limited company registration lies in the fact that it allows a business to access a wider pool of capital from the public, thereby enabling them to raise significant funds for growth and expansion. Moreover, PLCs also have a higher level of credibility and reputation in the eyes of investors and the general public, which can be a significant advantage in securing partnerships, collaborations, and contracts.
Another advantage of public limited company registration is that it provides a level of protection to the shareholders and directors from personal liability in case of business failure or legal disputes. This means that their personal assets are not at risk in case the company goes bankrupt. Overall, public limited company registration is a crucial step for businesses that want to raise significant capital from the public, establish credibility and reputation, and ensure limited liability protection for their shareholders and directors.