Public Limited Company - Kanooni Rasta

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What Is Public Limited Company?

A public limited company is a business model which is registered by the Ministry of Corporate Affairs. It gives a big platform to the entrepreneur for expanding their business on national as well as international level as the name comprises “PUBLIC” word which clearly shows that the company can raise their funds from the general public and they have full interest and stake in the company. However, their liabilities are limited. A public company generally starts with a minimum of 7 people, but there is no maximum limit of the shareholder. In private limited company, the numbers of members restricted to only 200, but there is no such limit in the public limited company which means there can be either 50 shareholders or 5000 shareholders in the public company, but it should not be less than 7. The management is handled by the board of directors of the company which contains minimum 3 and maximum 15 individual persons as directors of the company. The trading of the share is also possible under public limited company through the stock exchange. Under this company, any person can become the shareholder of the company no matters where he lives and what is his identity the only thing he needs is that he should hold at least one share of the company to become its shareholder. People invest their funds and get the opportunity to earn a profit in the form of dividend and other different ways.

Documents Required For One Person Company Registration

Identity Proof (Aadhaar / Voter ID card, Driving License) of all the designated Directors and Shareholders

Residential proof of the registeredBusiness Address (Telephone / Gas / Water / Electricity bill which should not be older than 2 months)

Address-proof of the Directors and Shareholders

An NOC or No Objection Certificate from the of the business place’s owner

Directors’ and Shareholders’ PAN Card details

Company’s Memorandum of Association & Article of Association

Advantages of Becoming One Person Company

Shareholders’ Limited Liability

In a Public Limited Company, the accountability of the Shareholders and Directors is limited according to the amount of the shares they own in the organization. For instance, if the public limited company face any financial emergencies,the personal assets of the shareholders will not be affected as per the regulations.

Listing in the Stock Exchange

Unlike a Private Limited organization, Public Limited companies can list themselves to the IPO (Indian Public Offerings) and the popular Stock Exchanges. This leads to several business-related benefits and opportunities.

Distinct Legal Entity

In a Public Limited Company, the existence of the entity does not depend on any individuals’ presence in the organization. For example, any Shareholder or Director may leave the organization without affecting the actuality of the particular Public Limited Company.

Countless sources for Fund-Raising

A Public Limited Company can raise its resources by crowd-funding or from the common people’s involvementfollowing the legal aspects. It helps an entity surviving in the marketplace and going for new ventures with ease.

Simple Transferability of Shares

Following the regulations of the Companies Act, 2013, the shares of a Public Limited company can be transferred without any hassle. Added on that, being listed in the Stock Exchange andtransferability feature, people are always willing to invest leading to financial aids for the same.

Cautious on Business Transparency

As a Public Limited company involves public interaction and involvement in all the stages, the organization always looks for clarity in the business operation by publishing the Audit Credentials, Statutory Reports to its people.

Upholds the Brand Position in Marketplace

It is always beneficial for an organization while being registered as a Public Limited company. Being listed in the Stock Exchange and publishing the reports to its people enhances its Brand Image and reputation in the market.

Comparison

Topics	Public Limited Company	Private Limited Company
Members / Shareholders	Minimum: 7 Maximum: No Limit	Minimum: 2 Maximum: 200
Directors	Minimum: 3	Minimum: 2
Public Invitations	Yes	No
Issuance Of Prospectus	Required	Not Required
Name Variances	Must have ‘Limited’ at the end of its name	Must have PVT. LTD. at the end of its name
Mandatory Statutory Meeting	Yes	No
Managerial Remunerations	There are no as such restrictions	Cannot exceed the limit of 11% of its net profit
Stock Exchange	Can be enlisted in the stock exchange & conduct the Stock Trade publicly as per the Director’s preferences	Not listed on stock exchange neither carry out stock trade publicly

How we work?

Fill the form & make the Payment
Get a Call from our CA Panel &share the required Documents
We will start Drafting the Requirements to the ROC & MCA
Following the DIN & DSC registration,will proceed for Business Name Approval
Congratulations! Your Public Limited Company is registered successfully

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FAQ

Which Act oversees the registration process for a Public Limited Company?

The Companies Act, 2013 of the Indian Govt. regulates and oversees the registration procedure for a Public Limited company. In addition,the Registrar of Companies (ROC) regulates the process with the Ministry of Corporate Affairs (MCA).

Can a Public Limited Company in India raise its capital from the Stock Market?

Definitely! A Public Limited company can enroll itself inseveral stock exchanges in India and raiseits capital from the stock market itself.

To register a Public Limited company, is there any requirement regarding the minimum paid up capital?

The keyconditionwhile registering a Public Limited company is the minimum paid-up share capital ofRs. 5 Lakhs. Though,it has been repealed by the Companies (Amendment) Act, 2015 of the Indian Govt.

In India, what are the Liabilities of a Public Limited Company?

A Public Limited Company’s key liability lies on keeping transparency of its business operation and the flow of its funds. The organization is required to regularly publish the Audit Reports, Statutory credentials and its Annual Compliances with ROC/MCA, RBI, SEBI, etc.

Do I need to be present physically to register a Public Limited Company?

Absolutely not! Online Legal India™ provides 360° guidance and professional assistance to complete the Public Company Registration process entirely on our digital platform. You just need a stable internet connection to furnish the documents as said by our CA panel.