Public Limited Company

What is a Public Limited Company?

Public Limited Companies are formed wherein, directly or indirectly number of members is more than fifty or public money is involved. Minimum number of members in Public Limited Company is seven and there is no cap on the maximum number of members. Public Limited Company being a separate legal entity has most of the characteristics of a Private Limited Company other than ease of transfer of shareholding by its member.

Benefits of Registering a Public Limited Company

  • Ease in issuing shares to public
  • Reliability in the worth of shares
  • Effective implementation of the policy of distribution of workload
  • Centralization system will help in building a team work
  • Ability in raising large capital
  • Easy to have business growth while using funds

Besides, there are many more benefits that one can reap while registering the company as public limited. Capital raised from the initial public is a kind of safe source of capital which is permanent and no need to pay interest or repayable like debt. It will be easy for the company to grow its business while using the same raised funds where the roles and obligations of management if defined and liability is limited. Thus, there are some regulations and guidelines that need to follow for registration of public limited company in India.

Process for Public Limited Company Registration

There are various prescribed rules and regulations have been stated for public limited company formation and incorporation in India under the New Companies Act, 2013. It is mandatory for one to follow each and every step while applying for the certification of the same company. Here below we bring you with detail steps to register a public limited company in India.

  • Minimum 7 shareholders and 3 directors need to form a public limited company.
  • Minimum share capital of worth 5 lakh is required for the same.
  • Require DSC ­ digital signature certificate for any one of the directors that can be applied while submitting the address proof and identity proof with self attested of the same director.
  • Get DIN (Director Identification Number) that can be obtained while submitting directors personal details with attested copy to the concern DIN authority.
  • An application is to be made for pre­name. Where there is need to list at least 6 names in priority wise.
  • An application for name availability is to be made comprised of 6 names and main objective clause; what a company pursues after incorporation.
  • Filing the application to the Registrar of Company along with the necessary documents like Memorandum and Articles of Association, duly filled Form DIR 12, Form INC 22 and Form INC 7.
  • In the final process, follow with ROC while paying registration fees; and make changes, if required, to MOA/AOA in other legal documents of the proposed company.
  • Finally, after getting approval from all these prescribed steps; apply for the certificate of commencement of Business and company incorporation and formation.

The amendments and reinforcements in respect of company laws have been taking place at regular interval of time by the concern authority; thus, it is quite beneficial to have deep knowledge about the New Companies Act 2013 where you can contact us for the same.

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