Public Limited Company

Service Overview

A Public Limited Company is a company that is incorporated with minimum 3 directors. It has a separate legal existence from its members. These may/ may not be listed on the stock exchange. If listed, its share/stocks are traded publicly. Its formation, working and it’s winding up all its activities are strictly governed by rules, laws, and regulations. There must be a minimum of seven members with no limit on the maximum number of members. The shares of a company are freely transferable and that too without the prior consent of other shareholders or subsequent notice to the company. The liability of a member of a company is limited to the face value of the shares he owns. The shareholders of a company do not have the right to participate in the day-to-day management of the business of a company. This ensures the separation of ownership from management. Public Limited Company can offer shares to public and raise funds.

Cost of Digital Signature, Government Fees and Stamp Duty, if any, is payable by the client in addition to the Professional Fee being charged by indian MSME Helpline.

Brief Process

Process/ Procedure of registration

Step 1: Apply for Digital Signature Certificate (DSC)
Step 2: Fill in Form SPICe+ on the MCA portal and upload the required documents
Step 3: Upon completion of forms, these forms are digitally signed and uploaded on MCA Portal
Step 4: Once forms are uploaded, challans towards incorporation charges are to be paid.

FAQ

What are the disadvantages of a Public Limited Company?

Some of disadvantages of Public Limited Company include:

High Costs
Public Books
Greedy Shareholders
Takeover
Power
Slow Decisions

What is the minimum and maximum number of members allowed in a Public Limited Company?

The Minimum number of members is set to 7 and Maximum number of members have been Unlimited.

What is the minimum number of directors needed for a Public Limited Company?

The Minimum number of directors can be at least 3

When can any company start its business after incorporation?

A Private Company can commence its business immediately after its incorporation. However, a Public Company cannot start its business until a Certificate of commencement of business is issued to it.

What are the statutory compliances for holding meetings on Public limited company?

Public Limited Company must mandatorily call its statutory Meeting and file a Statutory Report with the Register of Companies

Which form of Company is the best option for entrepreneurs who has larger investment requirements?

Public Limited Company is the best option for entrepreneurs who concede larger investment requirements for the business.

Can a Public Limited Company raise capital from the Stock Market?

Any Public Limited company can list itself in any number of stock exchanges in India and raise capital from the stock market itself.

Are there any requirements for minimum paid up capital to set up Public Company Registration?

There is a primary requirement of the minimum paid-up share capital of INR 5 Lakh.

What are the Liabilities of Public Limited Company in India?

Liabilities of Public Limited Company include:

Public limited companies have to deal with heavy compliances strictly as they generally deal with public money.
There is much periodic & annual compliance to be made by a public limited company with ROC/MCA, RBI, SEBI, etc apart from the regular compliances concerned with income tax.
These regulatory authoritative liabilities are in addition to promote and secure steadily along with the welfare and profits of all shareholders of the public limited company in India.

Documents Required

Passport Sized Photographs of all the Directors
DSC (Digital Signature Certificate) of all the Directors
PAN of all the Directors
DIN (Director Identification Number) of all the Directors.
Copies of the Identity Documents of all the Directors- Voter Card/ Driving License/ Passport
Proof Of Office Address along with utility bill (not older than 2 months): Rent Agreement (if rented), ownership documents (if owned) and No objection certificate by Landlord.