Register a Limited Company

Overview of Public Limited Company Registration

Public limited companies enjoy all the rights of a corporate entity with limited liabilities and it is an ideal choice for the small and medium scale enterprises who wish to raise the equity capital from the general public.

Just like other companies, Public Limited Company is also registered as per the rules and regulations of the Companies Act, 2013. A public Company enjoys the benefits of limited liabilities for its members and has rights to sell its shares for raising the capital of the company. It can be incorporated with a minimum number of three directors and has more stringent rules and regulations as compared to a Pvt. Ltd. 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 benefits of a private limited company along with more transparency and easy transferability of ownership and shareholding. Name, shares, formation, number of members, management and directors, etc differentiates any Public limited company from the private limited companies.

What is the difference between the Public limited Company and Private Limited Company?

There are various points of differences between both these companies. Here are some chief differences between both:

 

Point Of Difference	Public Limited Company	Private Limited Company
Members	Minimum: 7 Maximum: No Limit	Minimum: 2 Maximum: 200
Directors	Minimum: 3	Minimum: 2
Public Invitations	Yes	No
Minimum Capital Income	No	No
Issuance Of Prospectus	Required	Not Required
Name Differences	Must have “Limited” at the end of its name	Must have PVT LTD at the end of its name
Mandatory Statutory Meeting	Yes	No
Managerial Remunerations	There are no as such restrictions	Cannot exceed the limit of 11/% of the net profit
Stock Exchange	Is listed on stock exchange and stock trade is carried out publicly.	Not listed on stock exchange neither carry out stock trade publicly.

Benefits of Public Limited Company

Here are the benefits provided to the company with Public Limited company registration

 

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.

 

Perpetual Succession

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 still continue its existence.

 

Improved Capital Of The Company

In a public limited company, the general 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.

 

Borrowing Capacity

A public company can enjoy unlimited sources for borrowing funds. It can issue equity, debentures and can accept the deposits from the general public by selling its shares. Moreover, most of the financial institutions find public companies more prominent than other unregistered companies.

 

Fewer Risks

Since public companies can sell their shares to the public, it lesser the scope of unsystematic risks of the market.

 

Better Opportunities For Growth And 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.

What are the basic requirements of Online Public Limited Company Registration in India?

According to the provisions of Companies Act, 2013 here are the requirements you need to fulfill to incorporate a Public company in India:

• The proposed company must have a minimum number of 7 shareholders
• The proposed company must have a minimum number of 3 directors
• No minimum capital required
• At least one director should have a Digital Signature Certificate
• Memorandum of Association and Article of Association.
• After approval from Registrar of the Companies, the proposed public company has to apply for the “Certificate of Business Commencement.”

 

Documents Required for Public Limited Company Registration

• Identity Proof such as Aadhar card, PAN card, Driving License, Voter Id of all the designated directors and shareholders.
• Address Proof of all the proposed directors and shareholder of the company.
• PAN card details of all the directors and shareholders
• Utility bill such as telephone, gas, water or electricity bill of the registered office as a residential proof of the business place. It should not be older than 2 months.
• An NOC or No Objection Certificate from the landlord of the business place.
• DSC or Digital Signature Certificate of the designated directors

 

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