Enhancing Capital-Raising Potential: The Advantages of Forming a Public Limited Company (PLC)

Enhancing Capital-Raising Potential: The Advantages of Forming a Public Limited Company (PLC)

When preparing a funding pitch, it is crucial to highlight the unique advantages of forming a public limited company (PLC). Emphasize that a PLC can significantly enhance capital-raising capabilities by issuing shares to the public, providing an attractive opportunity for investors. Additionally, a PLC can be listed on recognized stock exchanges in India and issue an initial public offering (IPO), which further boosts its visibility and credibility in the market. The ability to freely transfer shares without any restrictions and the absence of limitations on the number of members or shareholders are also key points that can attract potential investors. However, it is important to acknowledge the higher compliance costs associated with a PLC, due to additional Registrar of Companies (ROC) compliances and core compliances with stock exchanges and the Securities and Exchange Board of India (SEBI). Despite these costs, the substantial benefits of enhanced capital-raising potential, market visibility, and investor attractiveness make a PLC a compelling choice for entrepreneurs seeking to grow their business.