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Public Limited Company Registration
A separate legal business entity that has limited liability is termed as a Public Limited Company. There are many advantages of a Public Limited Company over other partnerships.
In order to setup an enterprise that would raise funds from the general public through the way of Initial Public Offering (“IPO”), the best option is to go for a Public Limited Company because they have special advantages of security laws to access the public market. They are considered to be the most transparent form of business structure.
Investors enjoy the benefit of easy transfer of shares and easy liquidity.
Law considers Public Limited Companies as separate legal entities from their owners, PLCs can enter into agreements under their own name. Owners are the ones who run the Public Limited Companies but they have their own set of rules and regulations.
In order to be an owner of a Public Limited Company you would have to buy the ownership interest of the company which is divided into ‘shares’ or ‘equity’. The owners then are called Shareholders or Stakeholders. The owners are generally mutiple individuals or big corporations.
The minimum number of owners can be 7 and there is no limit to the number of owners that a Public Private Limited company can have.
CHARACTERISTICS OF PUBLIC LIMITED COMPANY?
Public limited companies offer distinguished characteristics to its shareholders. Let’s look at some features of Public Limited Companies.
1. Limited liability –
Limited liability means that in case of loss the owners of the company cannot be held liable for their assets. They are separate legal entities from the company in the eyes of law. In case a Public Limited Companies becomes insolvent or fails to repay a loan, the owners don’t have to dissolve their own personal assets to repay the loan. In the eyes of law the company and the shareholders are separate entities regardless of the quantum of shares an organisation/individual owns. Public Limited Companies remain one of the most transparent form of business structure. It is the duty of the management to provide its shareholders as well as any changes that help in the organisation are made public.
2. Shares are freely transferable –
In a public limited company, the ownership is easily transferrable and the owners can easily sell their shares. Through the medium of share market, you can sell your shares easily if the company is listed on the market. You can also sell your ownership in the form of shares to individuals outside the market as well.
- Separate legal existence –
A public limited company is formed and possessed by shareholders and is a kind of business organization that runs as a separate legal entity from its owners.
- No limit of maximum member
It can have many shareholders. The minimum number of owners can be 7 and there is no limit to the number of owners that a Public Limited company can have.
The least number of directors needed to operate a public company is 3. The maximum number of directors for a public company is 15 directors. In case more than 15 directors need to be appointed then in such case they can be appointed by passing a special resolution.
ASSISTANCE BY LEGAL DOOR LLP in Incorporation
- Our Assistance in Public Limited Company Registration in India
We, at LEGAL DOOR are here to provide you with all Public Limited Company solutions. Our services include:
- Company name search
- Obtaining DSC and DIN
- MOA and AOA drafting
- Application filing
- Following up with the Ministry of Corporate Affairs.
Our excellent team consists of Lawyers, CA, CS professionals ready to provide you with top-notch services. We cater to all business needs and solutions.
Advantages to incorporate a private limited company:
- Copy of PAN Card
- Identity Proof (Voter Card, Passport, Driving Licence)
- Address Proof (Bank Statement, Mobile bill, Telephone bill, Electricity Bill)
- Passport Size Photo
For Registered Office
- Ownership Proof (Electricity Bill, Gas bill, Electricity Bill, Mobile Bill)
- NOC (Download Format)
Step 1 : Receiving Documents & Apply, DIN & DSC 1-2 Days.
Step 2 : Drafting MOA and AOA. 3-4 Days
Step 3 : INC-1 for name reservation, INC-12 for Licence (Depends upon different ROC) and Spice Form 32 6 to 9 Days
Step 4 : Certificate Of Incorporation, PAN & TAN
10 to 12 Days
Incorporating a firm took us about 10 to 12 working days. The length of time needed for incorporation will be determined by the client’s submission of relevant documentation and the speed of government approvals. Please choose a distinctive name for your company and make sure you have all the necessary documents before beginning the incorporation procedure in order to ensure a quick process.
The Director must be at least 18 years old and a natural person. He might or might not be an Indian citizen or resident. We can state that directors of Indian Public Limited Companies may be international nationals as well.
In case of Public Limited Company, Minimum three (3) and Maximum Fifteen (15) numbers of directors are required.
There is no limit on maximum number of member; however minimum numbers of members are Seven (7).
A Public Limited Company must file an income tax return with the Income Tax Department and have its annual statutory audit performed by a Chartered Accountant. A corporation must additionally file its annual filling forms with the Registrar of Companies in addition to that. Additionally, the Public Limited Company is required to have Board meetings at least once every three months and Annual General Meetings at least once a year. It is also required to keep minutes of all Board and General Meetings as well as Statutory Registers.
Yes, After receiving a Director Identification Number, an NRI or foreign national may serve as a director in a public limited company. On the Board of Directors, however, at least one Director must be an Indian resident.
The RUN app on the MCA portal can be used to register the name of a public company in India.
In India, a Public Ltd Company is able to sell its shares to the general public, but a Private Ltd Company is unable to transfer shares to third parties.