What is a Public Limited Company?

A public company is a corporation wherein the ownership is dispensed to general public shareholders through the free trade of shares of stock over-the-counter at markets or on exchanges.A Public Limited Company registration in India is the best suitable business structure for entrepreneurs who are planning for large-scale business operations.

To register a Public Limited Company in India there should be a minimum of seven members and there is no limit on the maximum number of members/shareholders for starting a Public Limited Company. A Public Limited Company is registered under the provisions that are prescribed under the Companies Act, 2013.

The member of a Limited Company registered in India enjoys the features of Limited Liability and this type of entity is also allowed to raise capital from the public by the issuance of shares.

Benefits for registering as Public Limited Company

  • Easily raise a large capital in as there is no upper limit on the number of partners that the company can have.
  • Limited Liability – In the event that the organization ends up wiped out/bankrupt and can’t satisfy business liabilities, the individual resources of the proprietors/investors can’t be utilized to reimburse the liabilities of the organization.
  • Having a Perpetual existence – Public Ltd Co. has various legal statues and continues to exist even if any of the owners pass away, become bankrupt, or go insane.

Requirements for registering a Public Limited Company

  • Minimum 7 shareholders are required to form a Public Limited Company.
  • A minimum of 3 Directors is required to form a Public Limited Company.
  • A minimum share capital of Rs.5 lakh is required.
  • DSC of one of the Directors is needed when the self-attested identity copies and address proof are submitted
  • DIN for the Directors are necessary.
  • An application that comprises the main object clause of the company is made. This object clause will define the main objectives of a Company after the incorporation.
  • The application is submitted to the ROC along with the necessary documents like MOA, AOA, a duly fille form DIR-12, Form INC 7, and Form INC -22 is needed.
  • Once the ROC has approved the company should apply for the business commencement certificate.

Looking to establish a Public Limited Company?

Jitesh Telisara & Associates LLP provides comprehensive services for Public Limited Company registration.