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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.
A Public Limited Company offers limited liability to its management and the owners. For raising the capital, a public company authorized to sell its shares to the public. It has more strict regulatory requirements as compared to a Private Limited company
BORROWING CAPACITY
A Limited company has a good borrowing capacity. It can issue secured and unsecured debentures and can also accept deposits from the general public. Bank and financial institutions also prefer public limited companies over partnership firms or proprietary concerns for large financial assistance.
PROPERTY OWNING
No shareholder can make any claim on the company property as the company is a going concern and will continue to exist.
INTERRUPTION FREE EXISTENCE
Limited company is not affected by the departure or death of its members. Irrespective of the
changes in membership, a company continues to exist.
SIMPLE TRANSFERABILITY
Shares of a limited company can be easily transferred by a shareholder to any other person. You can easily transfer shares by filling and signing the share transfer form and handing over the same to the buyer along with the share certificate.
DISTINCT LEGAL ENTITY
A company is a legal entity distinct from its members. The members of the company has no liability towards the creditors for paying debts.
LIMITED LIABILITY
The liability of the members of a company is limited only to the extent of the face value of shares taken up by them. Therefore, where a company is limited by shares, the liability of the members on a winding-up is limited to the amount unpaid on their shares.
OWNING PROPERTY
A company being a juristic person, can acquire, own, enjoy and alienate, property in its own name. No shareholder can make any claim upon the property of the company so long as the company is a going concern. The shareholders are not the owners of the company’s property. The company itself is the true owner.
CAPACITY TO SUE AND TO BE SUED
To sue means to institute legal proceedings against or to bring a suit in a court of law. Just as one person can bring a legal action in his/her own name against another in that person’s name, a company being an independent legal entity can sue and also be sued in its own name.
DUAL RELATIONSHIP
In the company form of organization it is possible for a company to make a valid and effective contract with any of its members. It is also possible for a person to be in control of a company and at the same time be in its employment. Thus, a person can at the same time be a shareholder, creditor, director and also an employee of the company.
LOWER INCOME TAXES
Only corporation tax is charged (which is usually lower than other forms of taxes) as compared to other form of business like LLP, Proprietorship or Partnership
A Public Limited Company must have a minimum of three Directors and seven shareholders.
The director needs to be at least 18 years of age. Any individual can become the member of the Public limited company including foreigners/NRI.
No, you do not have to be present at our office or appear at any office for the registration of a Public Limited Company. All the documents can be scanned and sent through email to our office. Some documents will also have to be couriered to our office.
Yes, a NRI or Foreign National can be a Director in a Public Limited Company after obtaining Director Identification Number. However, at least one Director on the Board of Directors must be a Resident of India.
A Public Limited Company is a Company that is listed on the recognized stock exchange and the securities of a Public Limited Company are Traded publicly. A Private Limited Company is not listed on the stock exchange and the securities are held by the members privately.
100% Foreign Direct Investment is allowed in India in many of the industries under the Automatic Route. Under the Automatic Route, only a post-investment filing is necessary with the RBI indicating the nature of investment made. There are a few industries that require prior approval from the RBI, in such cases, approval must first be obtained from RBI prior to investment.
A registration certificate issued by the registrar of the business is valid until you are meeting applicable rules & compliance.
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.