Public Limited Company

Public Limited Company

A Public Limited Company under Company Act 2013 is a company that has limited liability and offers shares to the general public. It’s stock can be acquired by anyone, either privately through (IPO) initial public offering or via trades on the stock market. A Public Limited Company is strictly regulated and is required to publish its true financial health to its shareholders.

Characteristics

  1. Directors
  2. As per the provisions of the Companies Act, 2013 to start a public limited company, a minimum of 3 directors are required and there is no restriction on the maximum number of directors.
  3. Limited Liability
  4. The liability of each shareholder is limited. In simple words, a shareholder of a public limited company isn’t personally responsible for any loss or debts of the company for any amount greater than the amount invested by them; contrary to partnerships and sole proprietorship's, where the partners and business owners are jointly and severally liable for the debts of the business. However, this characteristic of a public limited company does not offer immunity to the shareholders. The shareholders will be held responsible for their own illegal actions.
  5. Paid up capital
  6. A public limited company is required to have a minimum paid-up capital of Rs 5 lakh or such higher amount as prescribed under the act.
  7. Prospectus
  8. A prospectus is a comprehensive statement of the affairs of the company issued by a public limited company for its public and there is a requirement under the Act for public limited companies to issue a prospectus. However, there are no such provisions for Private Limited Companies. This is because private limited companies cannot invite the public to subscribe for their shares.
  9. Name
  10. It is a compulsory requirement under the Companies Act, 2013 for all the public companies to add the word ‘limited’ after their name.

Requirements Process for Registration

  1. Documents required
    • Proof of identity of all the shareholders and directors
    • Proof of address of all the directors and the shareholders
    • PAN number of all the shareholders and directors
    • Utility Bill of the proposed office i.e. proposed registered office for the company
    • A NOC (No Objection Certificate) from the landlord where the office of the company will be situated
    • Digital Signature Certificate (DSC) of the directors
    • Memorandum of Association (MOA)
    • Articles of association (AOA)
  2. Process for Registration
  3. 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
    • The minimum share capital of Rs. 5 lakhs are 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 an approval from the ROC, the company should apply for the ‘certificate of business commencement.’

Advantages

Advantage
One of the advantages of a public limited company is that, as with a private limited company, a PLC is set up as a separate legal entity, which means that you won’t be financially or legally liable for losses made by the business. Other advantages of a public limited company include:

  • Wider financial input:As a PLC you can offer your shares for sale to the public, bringing a much greater choice of investment with it.
  • Greater credibility: Many people see a PLC as a more established company. This means your company may seem more prestigious as a result.
  • Shared responsibility:As well as limiting your personal liability you’ll also be able to share some of the load. This means you’ll be getting help from shareholders with ideas, decisions and action.
  • Skills and expertise:Bringing a greater range of people into your business mix means you’ll also be able to benefit from their experience, their skills and their expertise.
  • Tax advantages:With the company paying Corporation Tax on taxable profits you may be protected from higher income tax rates. There are also more tax-deductible costs and allowances on hand for limited companies too.

FAQ's

The director needs to be at least 18 years of age. Any individual can become the member of the Public limited company including foreigners/NRI’s.

No, you do not have to be present at our office or appear at any office for the registration of a Public Limited Company. All the documents can be scanned and sent through email to our office. Some documents will also have to be couriered to our office.

There is absolutely no other payment. We will send you an invoice that is all-inclusive, with no hidden charges.

A limited company must hold a Board Meeting at least once in every 3 months. In addition to the Board Meetings, an Annual General Meeting must be conducted by the Limited Company, at least once every year.

Yes, an NRI or Foreign National can be a Director in a Public Limited Company after obtaining Director Identification Number. However, at least one Director on the Board of Directors must be a Resident of India.

Submit A Query

Manish Moyal

Director

I am very pleased with the project you have done, and especially your commitment to providing a quality solution when it meant going the extra mile to do so.

Bharat Arora

Director

WE WORKED WITH THELEGALBANK TO REGISTERED OUR COMPANY Protocloud Technologies PVT. LTD. THE COMPANY IMPRESSED US WITH THEIR SERVICES.

Puspandra

Director

WE WORKED WITH THELEGALBANK TO REGISTERED OUR COMPANY PIXYRS SOFTECH & RESEARCH PRIVATE LIMITED THE COMPANY IMPRESSED US WITH THEIR SERVICES.

Contact with Us

Address

B-4/193, Chitrakoot Scheme, Vaishali Nagar, Jaipur, Rajasthan-302021

Phone

+91-141-4910100 , +91-9119112929

E-mail

info@zumosun.com