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.
- 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.
- 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.