About Public Limited Company

A public limited company is a form of business organization that operates as a separate legal entity from its owners. It is formed and owned by shareholders. Shares of a public limited company are listed and traded at a stock exchange market freely. Shareholders of a public limited company are limited to potentially lose only the amount they have paid for the shares they own.

Register my Public Limited Company

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Our scope of work

    1. Any amount of Capital;

    2. Application for 3 Director Identification Numbers;

    3. Application of 3 Digital Signatures (validity 2 years);

    4. Name Approval;

    5. Drafting of Memorandum and Articles of Association;

    6. Drafting of other additional documents;

    7. Preparation of various eforms;

    8. PAN & TAN Application

    9. Resubmission of eforms, if any;

    10. Obtaining Certificate of Incorporation from Registrar

Know more about Public Limited Company

Public Limited Company

A public limited company is a form of business organization that operates as a separate legal entity from its owners. It is formed and owned by shareholders. Shares of a public limited company are listed and traded at a stock exchange market freely. Shareholders of a public limited company are limited to potentially lose only the amount they have paid for the shares they own.

 

1. Director:

  • Minimum no. of directors required are 3 out of which 1 shall be Indian Resident.
  • Directors are the managers and they are responsible for day to day functioning of the Company.
  • Director Identification No. (DIN) and Digital Signature Certificate (DSC) are required to be a director of the company
  • Any person can be a director of the company including family members.

 

​​​​​​​2. Shareholder:

  • Minimum no of shareholders required are 7.
  • Shareholders are the owners of the company
  • Director and Shareholders can be the same.

 

3. Capital:

  • There are 2 types of capital i.e. Authorize Capital (It is the capital up to which company is authorize to raise from the member and it can be increase as and when required.), Paid Up Capital (It is the capital which is paid up by the members of the company and it can be increase as and when required.)
  • There is no such requirement for minimum capital, hence the company can be formed with the capital starting from INR 1.

 

4. Registered Office:

  • Any place can be made as the registered office of the company even the residential place can be used as the registered office of the company.

 

5. Registering Authority:

  • Ministry of Corporate Affairs

 

6. Required Documents

> Proof of Registered office address (Conveyance/ Lease deed/Rent Agreement/Maintenance Bill)

> Copy of the utility bills of the registered office (Electricity Bill/Telephone Bill not older than two months)

 

    Directors / Shareholders

> PAN Mandatory- Indian National / Passport – Foreign National

> Proof of Identity – Voter Id/Passport/Driving License

> Proof of Address (Electricity Bill/Bank Statement/Telephone Bill/Mobile Bill not older than 2 months)

*All documents for Indian National – To be self-attested

*All documents of Foreign National – To be self-attested & apostilled

Obtain DSC (Digital Signature Certificate)

01

Prepare SPICe+ form (Part A – Name availability and reservation request)

02

Prepare SPICe+ Part B form (Company information i.e. directors, capital etc.)

03

Prepare e-form SPICe+ MOA (INC-33) ,SPICe+ AOA (INC-34) and SPICe+ AGILE-PRO (INC-35)

04

Download all the e-forms prepare online and affix DSC on all the e-forms.

05

Attached the require documents with form SPICe+ and upload the e-forms to MCA portal.

06

Verification of documents / forms by RoC

07

Issue of Certificate of Incorporation by RoC

08

Advantages

The most obvious advantage of being a public limited company is the ability to raise share capital, particularly where the company is listed on a recognised exchange. As well as share capital, a public limited company will often find itself in a better position when looking at other potential sources of finance.
There is no limit on the number of shareholders in a public limited Company hence the shareholder base is quite wide. The more the number of the members the risk would be minimized.
The value and chances of being able to raise finance is in how it can be employed to serve the business. By having more finance potentially more readily available and on better terms than a private company, the public limited company can be in an advantageous position to: i. Pursue or gain new projects, new products or new markets ii. Grow capital expenditure to support and enhance the business iii. Make acquisitions (whether in cash or by offering shares to the shareholders of the target business) iv. Acquire funds for research and development. v. Pay off existing debt (or replace existing debt with new debt on better terms)
Going public can enhance the options for the founders to exit the business at some point in the future, if they wish to do so. Both higher transferability of shares and the increased visibility of the business and its performance may increase the chances of bid interest from potential suitors.
The shares of the Public Limited Company are freely transferable.

Disadvantages

A Public Limited Company has to comply with various laws and compliances of the regulatory authorities which leads to increase in the Cost of Compliance.
Limited companies, whether public or private, have more of their details in the public domain, available via Companies House, than other business types. But the required level of transparency is much higher for public companies.
With a private limited company, the shareholders will typically be people known to the directors or founders. A private company will often be selective over who to admit as a shareholder, ensuring they support the vision and plans for the business.
A company must file its Annual Returns, Financial Statements, Auditor’s reports, Board’s Report etc to the Registrar of Companies. Which become public document once filed with Registrar of Companies and may be inspected by general public including competitors by paying some fees to the Registrar of Companies. Information disclosure can make an entity competitively disadvantaged. Competitors – especially those not required to disclose any documents – can access that information and use it to improve their own business.
The financial commitment in case of public is much higher.
Factors of Comparison Private Company Public One Person Company Limited Liability Partnership Partnership Sole Proprietorship
Capital Min: INR 1 & Max:No Limit Min: INR 1 & Max:No Limit Min: INR 1 & Max:2 Crore Min: INR 1 & Max:No Limit Min: INR 1 & Max:No Limit Min: INR 1 & Max:No Limit
Director Minimum 2 Minimum 3 Minimum 1 - - -
Shareholder Minimum 2 Minimum 7 Minimum 1 - - -
Designated Partner/Parter - - - Minimum 2 Minimum 2 -
Taxation 30%(25% if turnover does not exceed 250 Crore) 30%(25% if turnover does not exceed 250 Crore) 30% 30% 30% As per Slab Rates
Statutory Audit Compulsory Compulsory Compulsory If Contribution exceed INR 25 Lacs; If Turnover exceed INR 40 Lacs Not Required Not Required
Investor Preference High Low Low Medium Very Low Very Low
Compliance Cost Mdeium High Low Low Low Low
Regulator Registrar of Companies SEBI/Registrar of Companies Registrar of Companies Registrar of Companies Registrar of Firms -
Time take for Registration 5-7 working days 5-7 working days 5-7 working days 20-25 working days 10-12 working days 5-7 working days