A brief about Public Limited Company
A Public Limited Company is a company that has limited liability and also can offer shares to the general public. A Public Limited Company is strictly regulated and has to disclose its financial reports periodically to its shareholders. It is the most suited business formation for businesses having heavy investments. A Public Limited Company should have a minimum of 3 directors and 7 shareholders. A Public limited Company is required to have a minimum paid-up capital of 5 L and above as prescribed under the act. As per Companies Act 2013, a Public Limited Company must issue a prospectus for its public which includes a comprehensive statement of the affairs of the company. A Public Limited Company gets a broader exposure for raising funds for its business. It can list itself in various stock exchanges in India and raise capital from stock market. A Limited Company enjoys a wide range of funding options like through bank loans, general public and institutional investors.
Special Features of a Public Limited Company
Public Limited Company is the best choice for businesses involving heavy investments as it offers more options of fund raising than a Private Limited Company.
Separate Legal Entity: As per Companies Act, a limited company is an artificial judicial person which is a separate legal entity from its Directors and Shareholders. Thus a Company enjoys a wider legal capacity to own assets and properties and incur debts whereas the individual company members owe no liability towards the company’s creditors for debts.
Limited Liability: For a Public Limited Company, liability of the shareholders for the losses of the company is limited to their contributions only. In simple words, shareholders of a public limited company are not personally responsible for any loss or debts of the company for any amount greater than the amount invested by them. But, it does not offer immunity to the shareholders. The shareholders will be held responsible for their own illegal actions.
Perpetual Succession: A Limited Company is considered to be legally active until the winding up of the same through a legal process. A Limited Company is not affected by the death, insanity, or insolvency of an individual member. Thus, It has a continuous existence of a corporation till it is dissolved legally.
Transferability of Shares: Shares of a Public Limited Company are freely transferable between its members and non-members. Also, it is very easy to exit from a public limited company, only shares of the company need to be exchanged with purchaser along with share transfer form duly signed.
Equity Raising: Investors prefer to invest in a public limited company as it is a well-structured and more transparent about its portfolio and performance. Apart from bank loans, individual and institutional investors, a public limited company can list itself in various stock exchanges in India through IPO and raise funds for its business.
Key benefits of a Public Limited Company
Better Image and Credibility in the Market: Public Limited Company is very well known business structure. Corporate customers and government and vendors always prefer a public limited company as compared to other business formations
Better positioned to raise Funds & Loans: Public Limited Company is the best options for enterprises with larger investment requirements. It enjoys wide options to raise funds through bank loans, general public and institutional investors. Apart from that for larger fund requirements, a Public Limited Company can list itself in multiple stock exchanges in India through IPO to raise funds from capital market.
Limited Liability Protection: A Company has a limited liability towards a limited amount of debts. The liability of the members with reference to the Company’s debts is limited to the face value of the share purchased by them. This limited liability protection is a unique feature of a Private Limited Company in India that protects the Directors personal assets.
Easy Share Transfers: Shares of a public limited company can be easily transferable between its members and non-members unlike a Private Limited Company.
Better Sharing of Risk: As the shares of a public limited company are sold to the public at large, the of each of the investors are well distributed.
Major Requirements of Public Limited Company Registration in India
Before going for a Public Limited Company Formation in India, one must ensure the minimum requirements of different parameters as per Companies Act 2013.
Company Name Must be Unique: A Public Limited Company name must be distinct and unique. The proposed Company Name should not be similar to any existing registered Indian Companies or Trademarks.
Minimum 3 Directors and 7 Shareholders: A Public Limited Company must have at least 3 Directors and minimum 7 shareholders. Minimum one of Company’s Director must be a resident of India. There is no limit to the maximum shareholder of a Public Limited Company.
Minimum Capital Contribution & Authorized Capital: A Public Limited Company must have a minimum paid up capital of 5Lakh and minimum authorized share capital 5Lakh.
Registered Office: For a Private Limited Company Registration in India, a Company must have a registered address within India from where the basic business operation will be done. It is not mandatory to be a commercial location.
Easy documentations and process
Documents requirements for Public Limited Company Formation in India is very simple and only scan copies of the documents required by the authorities.
Documents of the Directors of the proposed Company
• Photographs of all the Directors
• PAN Card, Aadhar Card and Voter ID
• Address Proof: Updated Bank statement/Electricity Bill/Telephone Bill/Mobile Bill(not older than 30 days) – any one
• Identity Proof: Voter ID Card/Passport/Driving License (any one)
• Consent of Director (Format will be provided)
Documents for Registered Office Address
• Latest Electricity Bill/Any Other Utility Bill in the name of the owner
• Rent Agreement between owner and proposed Company promoter.
• NOC from the owner (Format will be provided)
Public Limited Company Registration from TRUSTLINK
TRUSTLINK offers attractive package for Public Limited Company Registration. Our Public Limited Company Registration Package offers the following package with its clients:
• Digital Signatures with Token
• Preparation of MOA & AOA
• DIN for Directors
• PAN and TAN of the Company
• PF & ESIC Registrations
• Incorporation Certificate
• Bank Resolution for Account Opening
• Free MSME Registration
• Free 1 year web hosting* with ssl.
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