According to Company Act 2013, a Public Limited Company is a company that has limited liability & offers shares to the general public. It is stock can be acquired by anyone, either privately through (IPO) initial public offering or via trades on the stock market. Having all the rights of a corporate entity with limited liabilities it is an ideal choice for the small and medium scale enterprises who wish to raise the equity capital from the public. It can be incorporated with a minimum number of three directors and has more stringent rules and regulations as compared to a private limited Company. It must have a minimum number of seven members whereas there is no limit for the maximum number of members. It provides all the profits of a Public limited company with more transparency & easy transferability of ownership and shareholding.
Frequently Asked Questions
Limited Liabilities for The Shareholders of The Company
Shareholders of the public company enjoy the benefits of limited liabilities under which their assets are safe and cannot be used to clear the debts and losses of the company. Despite of it, the shareholders are responsible for their own legal offenses. All the members, directors and shareholders enjoy this right and their assets cannot be seized by any bank, creditors, or government bodies.
A public limited company is considered as a corporate body that has perpetual succession. Means in case of death, retirement, insanity, and insolvency of one or more members/ shareholder/ directors, the company continue its existence.
Improved Capital of The Company
In a public limited company, the public is invited to buy the shares of the company. Hence, anyone can invest in a public company that improves the capital of the proposed company.
One of the biggest benefits is that a public company can enjoy unlimited sources for borrowing funds. It can issue equity, debentures and can accept the deposits from the public by selling its shares. Moreover, most of the financial institutions find public companies more prominent than other unregistered companies.
Since public companies can sell their shares to the public, it lesser the scope of unsystematic risks of the market.
Better Opportunities for Growth & Expansion of The Company:
Fewer risks lead to better opportunities so that the company can grow and expand by investing in new projects from the funds raised by selling its shares in the market.
- Identity Proof - Aadhar card, PAN card, Driving License, Voter Id of all the designated directors & shareholders.
- Address Proof of all the proposed directors and shareholder of the company.
- PAN card details of all the directors and shareholders
- Utility bill - Telephone, gas, electricity bill of the registered office as a proof of the business place. It should not be older than 2 months.
- No Objection Certificate from the landlord of the business place.
- Directors Identification Number of all the designated directors
- Digital Signature Certificate of the designated directors
- Memorandum of Association (MOA) and Article of Association (AOA)
According to the provisions of the Companies Act, 2013 to start a public limited company, minimum 3 directors are required & there is no restriction on the maximum number of directors.
The liability of each shareholder is limited. In other words, a shareholder of a public limited company is not 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 proprietorships, where the partners and business owners are jointly and severally liable for the debts of the business.
Paid up capital
A public limited company need to have a minimum paid-up capital of Rs 5 lakh or such higher amount as described under the act.
Prospectus of the company is mandatory for the public limited companies, issued by the proposed company for its public. It is a note of comprehensive statements of works and affairs of the company. However private companies have no such compliances as they do not have rights to invite the public for their shares.
Name of The Company
All the Public limited companies need to add “Limited” word at the end of their name. It is stands for an identity of a public company.
The Process of Company Incorporation generally takes 1-2 working days. The extra time taken, if any for incorporation will depend on relevant documents submission by the client & speed of Government Approvals.
The Public Limited Company Registration process is completely online though CA Mantra, so you do not even have to leave your home to get your entity registered.
We will assist you in these ways: -
- Allotment of DIN and Obtain DSC for all Directors
- Drafting of MOA & AOA
- Guiding and Suggesting in the selection of the name.
- Filing of registration related documents with RoC
- Obtain Company Incorporation Certificate
- Company PAN and TAN, ESI and PF numbers
6 Steps to Register Public Limited Company
The first step is, you need to apply for the Digital Signature Certificate(DSC) for all the proposed directors in the company. DSC is used to sign the e-forms and is an authentic and safe method to file all the documents on an electronic platform. It is a mandatory document. It takes only 1 working day to obtain a DSC.
Ministry of Corporate Affairs has simplified the DIN procedure, as an applicant can apply for it through the SPICe+ form and do not require filing any other form. It is mandatory for all the directors of the company to apply for their Director’s Identification Number.
The third step involves name registration of the company. The company name should unique and not be taken or registered to another brand name.
Once the company’s name has been approved you can now file the SPICe+ form to avail the company incorporation certificate. Along with it, you need to file all the required documents such as MOA (Memorandum of Association) and AOA (Article of Association). All the documents and applications are further verified by the higher authorities.
After the applications and document to have been received to the authorities & they have verified it, the company would receive the Certificate of Incorporation which will include CIN and date of incorporation.
Once you have got the Certificate of Incorporation, now you get PAN & TAN and ESI and PF numbers along with COI under the new process. With the help of PAN card and Certificate of Incorporation, you can easily open a bank account at your Company’s name.
Why Select Us?
Our foremost priority is to provide Instant Support and are always very particular on adherence of timely delivery so that you don’t miss out on deadline. We have worked with some most time strict clients and we have never missed our target. Our one thumb rule says that “If we miss a deadline we are out”. Accounts and Finance function need always alert eagle eye approach!
Our prices are most reasonable and under budget that you never realize any cost burden in your organization in comparison of value addition we bring in. We believe in adoption of your business first and fee shall take care of itself mantra. We never bill for disappointment and take ownership. It is how we like to be treated and that is how our customers are served.
We at AVS & Associates only recruit experienced, skilled professionals who have proven expertise in their field. With a diverse Team of Chartered Accountants, Company Secretaries, Lawyers, and various other consultants on board, we offer end to end financial and legal service under one roof saving time and energy and bring synergy effect between various functions.
Having over 20+ years experience in the leadership team ensure we maintain highest ethical standards and never go out of trust with you. We always believe in long term relationship with our clients hence integrity is something we value the most. We ensure transparency in communication, service and cost. Our specialized experts helps in maintaining high quality.