Legaljini

Public limited company

Public limited company

A public company is a company which is governed by the provisions of the Companies Act. Ownership of such company lies with its Promoters and General Public. A public company can list their securities on any Regional Stock Exchanges and any person can buy and sell. In other words, its securities are freely transferable. The rules and regulations governed by the Companies Act with respect to a public limited company are much more stringent as compared to a private limited company. For incorporating a public company the minimum number of directors required are three and the minimum numbers of shareholders required are seven. There is no limit for maximum number of shareholders. .” Legaljini can help you with the establishment of the Public Limited Company by obtaining relevant registration.

 

Advantages of Public limited company

Perpetual Succession:

An incorporated company has perpetual succession. Perpetual Succession means the company shall continue to exist even if the member dies or ceases, etc. Public Limited companies are not affected by the status of their owner when it comes to their existence. Changes within the management does not bring any affect to the identity of the company, the Company will remain the same with same privileges, immunities, estates and possessions. The Company shall continue to exist till its wound up in accordance with the provisions of the relevant law. Death or inability to continue of owner does not hinder the proceedings of the company.

No Minimum paid-up capital:

The Companies Amendment Act, 2015 has come up with an amendment that there no minimum capital requirement for starting a public limited company. the words “of five lakh rupees or such higher paid-up share capital” has been removed which pertains to the minimum paid up share capital of the company. So a public limited company can start its business without any amount of minimum capital restriction.

Limited Liability:

The public limited company enjoys the benefit of limited liability. The liability of the company is different as from its members of a company. Liability for debts incurred by the company lies in the company itself and not on the members. If anything happen to the company, its members are personally affected.

Better access to capital:

Public companies are more access to capital i.e. public companies can raise capital from existing and new investors. This is because the shareholders of the public companies are generally the public. Public companies have the ability to raise the large amount of capital.

Process

A minimum of two designated partners are required to form a LLP.

01

Digital Signature Certificate

Obtain Digital Signature Certificate (DSC) for the proposed director/s.

02

DIN Number

Obtain Director Identification Number (DIN) for the proposed director/s.

03

Application

Select a suitable company name and forward the application to Ministry of Corporate Affairs (MCA) for availability of name.

04

Drafting

Draft its Memorandum of Association (MOA) and Articles of Association (AOA).

05

Documents

Sign and file various documents including MOA & AOA with the Registrar of Companies (ROC) electronically

06

Payment

Payment of requisite fees to Ministry of Corporate Affairs along with the stamp duty.

07

Certificate

Obtain Certificate of Incorporation.