A Public Limited Company is a company that is incorporated with minimum 3 directors. It has a separate legal existence from its members. These may/ may not be listed on the stock exchange. If listed, its share/stocks are traded publicly. Its formation, working and it’s winding up all its activities are strictly governed by rules, laws, and regulations.
A Public Limited Company is a company that is incorporated with minimum 3 directors. It has a separate legal existence from its members. These may/ may not be listed on the stock exchange. If listed, its share/stocks are traded publicly. Its formation, working and it’s winding up all its activities are strictly governed by rules, laws, and regulations. There must be a minimum of seven members with no limit on the maximum number of members. The shares of a company are freely transferable and that too without the prior consent of other shareholders or subsequent notice to the company. The liability of a member of a company is limited to the face value of the shares he owns. The shareholders of a company do not have the right to participate in the day-to-day management of the business of a company. This ensures the separation of ownership from management. Public Limited Company can offer shares to public and raise funds.
Cost of Digital Signature, Government Fees and Stamp Duty, if any, is payable by the client in addition to the Professional Fee being charged by indian MSME Helpline.
Process/ Procedure of registration
- Step 1: Apply for Digital Signature Certificate (DSC)
- Step 2: Fill in Form SPICe+ on the MCA portal and upload the required documents
- Step 3: Upon completion of forms, these forms are digitally signed and uploaded on MCA Portal
- Step 4: Once forms are uploaded, challans towards incorporation charges are to be paid.
Some of disadvantages of Public Limited Company include:
The Minimum number of members is set to 7 and Maximum number of members have been Unlimited.
The Minimum number of directors can be at least 3
A Private Company can commence its business immediately after its incorporation. However, a Public Company cannot start its business until a Certificate of commencement of business is issued to it.
Public Limited Company must mandatorily call its statutory Meeting and file a Statutory Report with the Register of Companies
Public Limited Company is the best option for entrepreneurs who concede larger investment requirements for the business.
Any Public Limited company can list itself in any number of stock exchanges in India and raise capital from the stock market itself.
There is a primary requirement of the minimum paid-up share capital of INR 5 Lakh.
Liabilities of Public Limited Company include:
Public limited companies have to deal with heavy compliances strictly as they generally deal with public money.
There is much periodic & annual compliance to be made by a public limited company with ROC/MCA, RBI, SEBI, etc apart from the regular compliances concerned with income tax.
These regulatory authoritative liabilities are in addition to promote and secure steadily along with the welfare and profits of all shareholders of the public limited company in India.
- DSC (Digital Signature Certificate) of all the Directors
- PAN of all the Directors
- DIN (Director Identification Number) of all the Directors.
- Copies of the Identity Documents of all the Directors- Voter Card/ Driving License/ Passport
- Passport Sized Photographs of all the Directors
- Proof Of Office Address along with utility bill (not older than 2 months): Rent Agreement (if rented), ownership documents (if owned) and No objection certificate by Landlord.