Under section 2(71) of the Companies Act, 2013, a public company is understood as an entity which is not classified as a private limited company. Apart from this, the minimum paid-up share capital of a public company is prescribed as per the requirement of the companies act. A public company can also be understood as an entity, which is not a subsidiary of a private limited company.
In India, there are three types of limited company: a public limited company, a private limited company, and a one-person company.
What is a Public Limited Company?
A Public Limited Company is defined under Section 2(71) of the Companies Act, 2013 as:
- a company which is not a private company
- a company with a minimum paid-up share capital of INR 5 lakhs.
Note : Under the Companies Act, 2013, a subsidiary company shall be deemed to be a public company if it is not a subsidiary to a private company, even if it is a private company as per its article.