Public Limited Company
Our Price
Market Price : INR 25,500
Our Price : INR 12,999 Only
Savings : INR 12,501
Govt Fees : Inclusive in the price
Time for Registration : 15 to 20 Working Days
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Public Limited Company
A Public Limited Company under Company Act 2013 is a company which is not a private company. It has limited liability and it can offer shares to the general public in compliance with SEBI and Companies Act, 2013. It’s stock can be acquired by anyone, either privately through (IPO) initial public offering or via trades on the stock market. A Public Limited Company is strictly regulated and is required to publish its true financial health to its shareholders. A public limited company is a voluntary association of members that are incorporated and, therefore has a separate legal existence and the liability of whose members is limited.
Elegibility
1. Minimum Number of Persons:
At least seven Persons are required to form any Public Limited Company. So in the Public Limited Company, at least seven persons are required .
Out of those 7 persons, at least 3 persons shall be Directors in the Company.
2. Residential Status:
Any person can be Subscriber in the Public Limited Company either resident, non resident, Indian National, or Foreign National. It is also not mandatory that the subscriber should be Individual, it could either be Individual or Body Corporate.
Whereas, only Individual could be Director in the Public Limited Company.
3. Capital Requirement:
Companiies Act, 2013 does not discloses any amount of minimum capital, hence no limit has been imposed on capital.
4. Purpose of Public Limited Company Formation:
Public Limited Company can be formed for runninng the business or for charitable purpose also.
5. Compulsory Clause:
At least one director and subscriber in the Public Limited Company should be Indian Resident who is responsible for the operation of the Company.
Documents for Public Company Registration
Documents and Details Required for Company Registration
(Scanned Copy of Self Attested Documents are required)
Documents Required of Proposed Directors and Promoters:
- Copy of PAN Card of the Proposed Promoters.
- Copy of ID Proof of the Proposed Promoters(VoterID/Passport/Driving License/Aadhar Card).
- Copy of Residential Proof of the Proposed Promoters(BankStatement/Electricity Bill/Telephone Bill/Mobilebill).
- Passport Size Photographs of the Proposed Promoters.
Documents For Registered Office
- Electricity Bill/ Water Bill in the Name of Office Owner
- Rent Agreement & NOC (if office is on rent)
- NOC (If office is self-owned or owned by parents)
Information Required Except Documents:
- Proposed names of the company (Maximum 4 Names).
- Main objects of the proposed company(Brief write-up).
- Designation Description of of the Proposed Promoters.
- Authorised Share Capital of the Company and Paid up capital of the Company.
- Educational qualification, Place of Birth of the Proposed Promoters.
- E-mail ID, Mobile Number and Occupation of the Proposed Promoters.
- Please provide Director Identification Number (DIN) of of the Proposed Promoters, if obtained already. If not, then DIN will be allotted only at the time of Incorporation of Company.
- Digital Signature Certificate (DSC) of of the Proposed Promoters, if available.
Procedure of Public Company Registration
The process for incorporation of a Public Company can be divided into following steps:
Digital Signature
Digital signature certificate must be created and approved by the licensed companies in India, e.g Vsign, Emudhra, Sify, etc. It is mandatory for the acting director and for nominee both. Application for DSC would require passport size photos of the applicant, identity proof and address proof.
Name Availability
Application for name reservation can be submitted to the MCA. Upto 2 names at a time can be applied which further could be rectified one again if not approved I the first time. The name should comply the norms for name approval guidelines.
Incorporation
After obtaining name approval, incorporation application is required to be filed to the ROC on mca.gov.in. I requires multiple details and documents e.g Spice Part B, Memorandum of Association (MOA), Articles of Association (AOA), INC-9, Agile Form. Further, the identity proof, address proof and residence proof of the member and nominee would be required. In addition to the MOA, AOA, identity proof, address proof, other incorporation documents like affidavits and declaration of the sole promoter must be submitted.
On filing for incorporation, approval is granted by the Registrar of Companies (ROC). In case there are any issues with the documents submitted, the application for incorporation can be resubmitted.
Benefits of Public Company Registration
Advantages of a Public Limited Company
A public limited company (ltd company) is the most common vehicle to carry on business for an entity intending to make a profit, issue its shares in the general public and enjoy the benefits of an incorporated entity, particularly limited liability. Besides, limited liability and minimal statutory compliances, ltd companies offer the following advantages:
Separate Legal Entity
An entity means something which has a real existence; a thing with distinct existence. A company is a legal entity and a juristic person established under the Act. A juristic person is a person who is not a natural person or human being. Therefore a company form of organization has wide legal capacity and can own property and also incur debts. The members (Shareholders/Directors) of a company have no liability to the creditors of a company for such debts. Hence, a ltd company is a legal entity separate from that of its members.
Perpetual Succession
A company has ‘perpetual succession’, that is continued or uninterrupted existence until it is legally dissolved. A company, being a separate legal person, is unaffected by the death or other departure of any member but continues to be in existence irrespective of the changes in membership. Perpetual succession is one of the most important characteristics of a company.
Limited Liability
Limited Liability means the status of being legally responsible only to a limited amount for debts of a company. Unlike proprietorships and partnerships, in a limited liability company the liability of the members in respect of the company’s debts is limited. In other words, the liability of the members of a company is limited only to the extent of the face value of shares taken up by them. Therefore, where a company is limited by shares, the liability of the members on a winding-up is limited to the amount unpaid on their shares.
Owning Property
A company being a juristic person, can acquire, own, enjoy and alienate, property in its own name. No shareholder can make any claim upon the property of the company so long as the company is a going concern. The shareholders are not the owners of the company’s property. The company itself is the true owner.
Capacity to sue and be sued
To sue means to institute legal proceedings against or to bring a suit in a court of law. Just as one person can bring a legal action in his/her own name against another in that person’s name, a company being an independent legal entity can sue and also be sued in its own name.
Listing in the stock exchange
Only a public company can issue shares, debentures, and other securities to the general public and also can get these securities listed in the Stock Exchange eg National Stock Exchange (NSE), Bombey Stock Exchange (BSE) and others also. Due to no restriction on the the number of shareholders, a public company can have lacs of shareholders.
Frequently Asked Question
The Public Limited Company deals with the public money and it has to make rather heavy compliances strickly that is bulkier than the Private limited company. Apart from the regular compliances related to Income tax, there are many periodic and annual compliances to be made by a public limited company with ROC/MCA, RBI etc. In addition, these regulatory liabilities are to secure and promote the profits and welfare of all shareholders of the Public limited company.
For setting up a public limited company anywhere in India, there are required a minimum of Seven Shareholders and Three Directors; the directors can also be shareholders. The requirement of the minimum paid-up share capital worth INR 5 Lac, has been removed by the Companies (Amendment) Act, 2015.
In addition to enjoying all those features and facilities which a private limited company relishes, a public limited company is entitled to go public, issue its shares in the stock market, or accept public deposits. The following are the main and most significant exclusive features of a public limited company:
- A public limited company can have a rather huge magnitude of capital, much more than that gathered by a private limited company.
- It is legally authorized to trade on stock exchanges.
- There is no limit to the maximum number of shareholders in a public limited company.
- The shareholders of a public limited company have limited liabilities, limited roughly to the face value of the shares they own. Again, shareholders do not have to take part in the day-to-day management of the business of the company.
- Shareholders of a public limited company are entitled to transfer their shares freely without needing consent of someone.
Yes, an NRI or Foreign National can also be a shareholder or director in a public limited company of India. For becoming a director, besides the basic requirement of being a sensible adult, such a person must possess the DIN issued by MCA.