Public Limited Company

What is Public Limited Company and its Registration?

Public Limited Companies are companies whose shares are traded in stock market or issues fixed deposits. For Public Limited Company Registration, the company must have minimum 3 Directors, 7 Shareholders and Maximum 50 Directors and need Rs 5 Lakhs of Paid up Capital. A Public limited company have all the advantages of Private Limited Company and the ability to have any number of members, ease in transfer of shareholding and more transparency.

What are the advantages and benefits of registering Public Limited Company?

  • Limited Liability Protection to Directors personal assets
  • Better image and credibility in Market
  • Easy to raise funds and loans
  • Favorite Business structure for Investors
  • Easy Transfer of shares
  • Most Suitable for Heavy Investment

What are the features of Public Limited Company?

A Public Limited Companies have following features:

  • It allows a significant degree of separation between operations and ownership.
  • One can provide stock ownership or ESOPS to employees. Only Limited companies are allowed to offer this feature of distributing their stocks among current and prospective employees.
  • Only Public Limited Companies can list its shares on Indian Stock Exchanges such as National Stock Exchange (NSE), Bombay Stock Exchange (BSE) and so on.
  • Only Public Limited Companies can accept Deposits from public under Companies Act, 2013.

What are the minimum requirements for Public Company registration?

  • Minimum 7 Shareholders
  • Minimum 3 Directors
  • The directors and shareholders can be same person
  • One of the Directors must be Indian Resident
  • Minimum Authorised Share Capital Rs. 500,000 (INR Five Lac)
  • DIN (Director Identification Number) for all Directors
  • DSC (Digital Signature Certificate) for two of the Directors

What are the documents required for Public Company registration?

  • Copy of PAN Card of directors
  • Passport size photograph of directors
  • Copy of Aadhaar Card/ Voter identity card
  • Copy of Rent agreement (If rented property)
  • Electricity/ Water bill (Business Place)
  • Copy of Property papers (If owned property)
  • Landlord NOC (Format will be provided)

How many Persons are required to incorporate a public limited company?

A Public Limited Company must have a minimum of three Directors and seven shareholders.

What are the requirements to be a Director?

The director needs to be atleast 18 years of age. Any individual can become the member of the Public limited company including foreigners/NRI’s.

What are the Statutory Compliances Required for a Limited Company?

A limited company must hold a Board Meeting at least once in every 3 months. In addition to the Board Meetings, an Annual General Meeting must be conducted by the Limited Company, at least once every year.