PUBLIC LIMITED COMPANY
Public Limited Company is registered in accordance with the requirements of the 2013 Companies Act, just like other businesses. A public company has the advantage of limited obligations for its shareholders and the right to sell shares to raise money. In comparison to a Pvt. Ltd. Company, it can be incorporated with a minimum of three directors and is subject to stricter rules and regulations.
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NATURE OF PUBLIC LIMITED COMPANY REGISTRATION
Public Limited Company is registered in accordance with the requirements of the 2013 Companies Act, just like other businesses. A public company has the advantage of limited obligations for its shareholders and the right to sell shares to raise money. In comparison to a Pvt. Ltd. Company, it can be incorporated with a minimum of three directors and is subject to stricter rules and regulations.
Public Limited Company is a different type of company but holds most of the characteristics of a private limited company. It enjoys more benefits such as ease of transferability, borrowing capacity, limited liability, and perpetual existence. Like any other companies in India, Public Limited liability is also registered according to the rules and regulations of the Companies Act, 2013.
BENEFITS OF INCORPORATING A PUBLIC LIMITED COMPANY
- Limited Liability Protection to Directors personal assets- Many times business need to borrow money and take high investment decisions. Public Ltd. Company is the best option for entrepreneurs with larger investment requirements. In case of normal Partnerships, Partners personal savings and property would be at risk incase business is not able to repay its loans or business goes into loss. In a Public limited company, only investment in shares of the business is lost, personal assets of the directors are safe.
- Better image and credibility in Market- Public limited company is popular and well known business structure. Corporate Customers, Vendors and Govt. Agencies prefer to deal with Public Limited Company instead of proprietorship or normal partnerships.
- Easy to raise funds and loans- Public Limited company can list itself in various stock exchanges in India and raise capital from stock market. Limited company also enjoys wide options to raise funds through bank loans, general public and Institutional investors.
- Favorite Business structure for Investors- Investors love to invest in Public Limited companies as it is well structured and transparent business structure.
- Easy Transfer of shares- Most important it is very easy to exit from a Public limited company, only shares of the company need to be handed over to the purchaser along with the signed share transfer forms.
- Most Suitable for Heavy Investment- Public Company is the best choice for businesses involving heavy investment.
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DOCUMENTS FOR ONLINE COMPANY REGISTRATION
For Indian nationals and foreign nationals, the documents required differ a bit. The following documents are required from Directors/Shareholders::
FOR INDIAN NATIONALS
- Copy of Pan Card, Aadhaar Card of all the directors and shareholders.
- Passport size photograph.
- Self-Attested copy of Identity Proof: – Voter ID, Passport or Driving License.
- Self-Attested copy of Address Proof: – Mobile Bill/ Telephone Bill/ Electricity Bill/ Latest bank account Statement (All should not be older than 2 months).
- Digital Signature Certificate.
- A NOC (No Objection Certificate) from the landlord where the office of the company will be situated.
- Director Identification Number (DIN) of all the directors.
FOR FOREIGN NATIONALS
In case of foreign directors and members, all their documents should be notarized and apostilled.
- Passport
- Passport size photograph
- Proof of Address: – Driving License/ Residence Card/ bank Statement with the last page of the recent transactions/ Utility Bill not older than 2 months.
- Digital Signature Certificate.
REQUIREMENT FOR REGISTRATION OF A PUBLIC LIMITED COMPANY
There are various rules and regulations prescribed under the companies act, 2013 for the formation of a public limited company. Here is what you should keep in mind when registering a public limited company:
- Minimum 7 shareholders are required to form a public limited company.
- Minimum of 3 directors is required to form a public limited company.
- A minimum share capital of Rs. 5 lakhs is required.
- Digital signature certificate (DSC) of one of the directors is needed while submitting self-attested copies of identity and address proof.
- Directors of the proposed company will need a DIN.
- An application is required to be made for the selection of the name of the company.
- An application comprising the main object clause of the company is to be made. This object clause will define what a company will pursue after its incorporation.
- Submission of the application to ROC along with the required documents like MOA, AOA, duly filled Form DIR – 12, Form INC – 7 and Form INC – 22 is needed.
- Payment of the prescribed registration fees to the ROC is required.
- After obtaining approval from the ROC, the company should apply for the ‘certificate of business commencement.
