Public Limited Company as per Companies Act
As per Companies Act, 2013, it is a company that has limited liability and offers shares to the general public. The stocks of this type of company can be acquired by anyone, either privately or through Initial Public Offering (IPO) or via trading on the stock market.
Requirements for Company
A Public Limited Company is required to have minimum number of 7 members, including minimum 3 directors and it has no cap on the maximum number of members. This type of company is also required to have a minimum paid-up capital of Rs. 5 lacs or such higher amount as prescribed by the Act. Further, the public limited companies are required to issue the prospectus and these type of companies must have ‘limited’ word in their name.
Categories of Company
Get your Public Limited Company registered through TaxHelpdesk
Once your order is placed, TaxHelpdesk’s dedicated team for reviewing of documents will check the documents uploaded by you within 24 working hours. After reviewing documents, a Tax Expert will be assigned and your order will be processed. Apart from this, you also will be able to check the status of the order in your assigned account.
What is the registration process?
It can be registered by following these steps:
Note
A completed SPICe+ form has to be submitted on the MCA portal in order to apply for company registration. Furthermore, the Director of a company needs to register on the MCA portal to fill the SPICe+ form and submit the required documents. After the registration process is completed, the director will get access to the MCA portal services which comprises of filing e-forms as well as viewing of public documents.
Difference between Private Limited Company & Public Limited Company
Documents to be submitted for registration
Documents to be submitted by Directors
– Scanned copy of PAN Card or Passport (Foreign Nationals & NRIs)
– Scanned copy of Voter’s ID / Passport / Driver’s License / Aadhaar Card
– Scanned copy of Latest Bank Statement / Telephone or Mobile Bill / Electricity or Gas Bill
Scanned passport-sized photograph
Documents to be submitted for Registered Office
– Scanned copy of Latest Bank Statement / Telephone or Mobile Bill / Electricity or Gas Bill of the owner of the property where the registered office of the company is situated.
– Scanned copy of Notarised Rental Agreement in English
– Scanned copy of No-objection Certificate from property owner
– Scanned copy of Sale Deed/Property Deed in English (in case of owned property)
Time limit for registration
Time period taken from the date of application on submission of all the required documents:
Particulars | Time Involved |
Application of DIN of Proposed Directors | 1-2 days |
Application of DSC of Proposed Directors | 3-7 days |
Drafting of MOA and AOA | 2-3 days |
Filing of SPice Form | 1-2 days |
Issuance of Certificate Incorporation | 5-10 days |
Obtaining of commencement of business certificate | 2-3 days |
All the processes stated above can be taken up simultaneously. However, the process of company registration can take up to 15-20 days, subject to the documents submitted and workload of the concerned government department.
Advantages & Disadvantages of Public Limited Company
Advantages | Disadvantages |
– Limited liability – Additional capital can be raised via share capital – Greater borrowing power – Shareholders can sell their shares – Artificial person | – Profit is shared among lot of people – More statutory regulations – Lack of overall ownership – Complicated winding up process – Lots of compliances |
FAQs
Public limited companies are the only class of company which are allowed to raise funds from the general public at large. The process of listing a company and raising the funds from public by making offer is known as Initial Public Offer (IPO). IPO is the process through which shares are offered by the companies to raise funds.
The Director needs to be over 18 years of age and must be a natural person. There are no limitations in terms of citizenship or residency. Therefore, even foreign nationals can be Directors in an Indian Public Limited Company
No. there is no need to be present physically. Since all the documents are uploaded online, physical presence is not require
Yes, foreign nationals/NRIs can invest in the shares of the public limited company subject to the guideline of Foreign Direct Investment (FDI) guidelines.
The public limited company becomes active on incorporation and remains in existence as long as the annual compliances are done on a regular basis. If it is not done so, then the company becomes dormant and its name will be removed from the register maintained by Registrar of Companies after a certain period of time. On the removal of the name of company, the same can be revived up to a period of 20 years from the date of removal of the name.
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