Unlisted Public Company Registration
An unlisted public company is the amalgamation of a public company and a small business. It can sell shares to arrange the capital for ventures. Unlike a proprietary company, an unlisted public company can sell an unlimited number of shares to shareholders without any problem. But, as its business volume is small, it is not listed on the official stock market.
If you buy shares of this type of company, you can sell it back to the company on a later date or someone else as per your convenience. It is possible because no official market is available for these shares. As a result, investors can’t check the stock market to find out whether the price of the stock is going up or coming down in value. So, there are very strict rules when it comes to informing the investors about losses and gains made by such companies.
Public business organizations are listed on the stock market. They sell shares to arrange cash to finance projects and ventures. Investors earn profit from their investment. An unlisted public company works on the same business model, but they are not added to the stock market.
Main advantages of An unlisted public company:
- No need to abide by the stock exchange compliances,
- Limited ownership restrictions,
- Less expenditure as companies don’t need to the pay the listing fee and
- Greater flexibility in fund raising via preferential allotment and borrowing