Public Limited Company

Public Limited Company is preferred for medium and large-sized businesses in India if they are planning to raise funds from the general public.

The primary advantage of a Public Limited Company is that it can raise capital from the public by issuing shares to investors in the form of IPO (Initial Public Offering). Thus, it is considered to be more transparent in its business model as compared to other types of business entities. In comparison to a Private Limited Company setting up a Public, LTD. Co. has stringent requirements. A Public LTD. Co. has a minimum of 7 members and there is no capping on the upper limit of the members of the company. A Public LTD. Co. keeps its operations distinct from its ownership to quite an extent. It is only a Public LTD. Co. that can have its shares listed on Indian stock exchanges such as NSE (National Stock Exchange) and BSE (Bombay Stock Exchange).

eStartIndia is the best online platform for services relating to Public LTD. Co. registration in India, offering a variety of company registration services like Private Limited Company Registration, One Person Company (OPC) registration, LLP registration, Nidhi Company Registration, Section 8 Company registration, Producer Company registration,  Indian Subsidiary registration, and FSSAI registration.

eStartIndia will help you to register a Public LTD. Co. from the comfort of your home, offering you services that are very specialized and tailored for each individual.

Get a free consultation for Public Limited Company registration with Our Top Rated Experts with simple Registration.

Advantages of Public Limited Company

• Separate Legal Entity — A Public LTD. Co. is an entity with a distinct identity from its shareholders and a separate juristic person as per the Companies Act 2013. This provides the company with many rights such as opening a bank account under its name, obtain licenses, hire employees, and enter into contracts and has more legal capacity.

• Perpetual Existence — A Public LTD. Co. continues to exist until it is legally dissolved by its directors. Death or departure of its directors for any reason has no effect on the company’s existence and the company continues to exist even when there is a change in ownership.

• Easy share allocation and redirection – The ownership of a Public LTD. Co. can be easily transferred by the method of transferring shares. The process is as simple as signing and filing a share transfer form along with individual share certificates subject to the approval of other shareholders.

• Property Ownership — Since a Public LTD. Co. is a juristic person; it can own and sell the property under its name. As long as the company is a running concern, the property owned under the company name cannot be claimed by any of the directors.

• Capacity to Borrow – Financial institutions such as banks prefer to give loans to a Company in comparison to LLPs or other proprietary concerns. There are many options available with a Public LTD. Co. to raise funds. A company can accept public deposits, raise debentures both secured and unsecured, and can also issue equity shares

• •    Shares shall not be permitted to be transferred to anyone else.

  •    One Person Company is forbidden from giving any invitations to the public to subscribe to the corporation’s securities.

  •    No One Person Company could voluntarily convert into any other type of corporation within 2 years from the date of incorporation of One Person Company, bar when the threshold limit of paid-up share capital, is Rs 50 lakh, is crossed or its average annual turnover during the applicable period exceeds Rs 2 two crores.

  •    One Person Company shall not convert into a corporation registered under Section 8.

  •    One Person Company is requisite to give a lawful identity by stipulating a particular name under which the activities of the corporation could be carried on. The words ‘One Person Company’ should be cited below the name of the firm, wherever the name is affixed, utilized, or engraved.

Minimum Requirement

Every corporation name should be in three parts. The first name is the name of the company. The second name is the object part, and the last one displays what is the type of corporation. For instance, for Mayur clothing limited, one could see that Mayur is the name of the company, clothing shows the object of the corporation, and limited shows the type of company.

The name of the One Person Company in India is required to be valid when it is registered under the Companies Act, 2013.

Minimum Requirement

• A minimum of 3 directors
• A minimum of 7 shareholders
• A minimum of 1 director to be Indian Resident
• Shareholder and director can be the same person
• DSC (Digital Signature Certificate) for 2 directors
• DIN (Director Identification Number) for ALL company directors
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Documents required for registration

Mandatory:

• Copy of PAN card for Indian Nationals;
• Notarized and/or apostilled passport copy for Foreign Nationals

Identity Proof:

• Passport; or
• Aadhar card; or
• Voter ID; or
• Driving license
• Passport size photographs

 Address Proof:

• Copy of Telephone/Mobile or Electricity bill; or
• Bank Account Statement (Less than 2 months old)

Company Address Proof:

• Telephone/Mobile/Electricity/Gas bill (Less than 2 months old); AND
• In case of rented premises a notarized copy of Rent Agreement with a No-Objection Certificate (NOC) for conducting business;
• In the case of self-owned premises registered title document

Others:

• Declaration of interest by Directors
• A resolution passed by Promoter company if any
• MOA and AOA of the Company