Characteristics of Public Limited company are:

1. Paid-up Capital
There is no such bar on the minimum paid-up capital.

2. Directors
As per the provisions of the Companies Act, 2013 a public company requires a minimum number of 3 directors and there is no such restriction on the maximum number of directors.

3. Members
As per the provisions of the Companies Act, 2013, a public limited company should be having at least 7 members and there is no such restriction on the maximum number of members.

4. Limited Liability
The liability of each shareholder is limited. In simple words, a shareholder of a public limited company isn’t personally responsible for any loss or debts of the company for any amount greater than the amount invested by them; contrary to partnerships and sole proprietorships, where the partners and business owners are jointly and severally liable for the debts of the business. However, this characteristic of a public limited company does not offer immunity to the shareholders. The shareholders will be held responsible for their own illegal actions.

5.Prospectus
A prospectus is a comprehensive statement of the affairs of the company issued by a public limited company for its public and there is a requirement under the Act for public limited companies to issue a prospectus, unlike the unlisted public company. However, there are no such provisions for Private Limited Companies. This is because private limited companies cannot invite the public to subscribe for their shares.

6.Name
It is a compulsory requirement under the Companies Act, 2013 for all the public companies to add the word ‘limited’ after their name. But in the case of private limited companies, they need to add “privately limited” after their name.