BBNC

Public Limited Company


Public Limited Company is the best suited for large scalable businesses, which requires a huge capital. It offers limited liability to its shareholders. and it can offer shares to the general public. The shares of Public limited company can be acquired by anyone via trades on the stock market.
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Overview

According to the companies Act 2013, A Public Limited Company is a company which is not a Private Company. which means it is a joint stock company. There is no limit on the number of shareholders, it is formed by association of persons voluntarily. A Public Limited Company should have at least 5 Lacs of paid-up capital.

A public limited company can invite general Public for subscription of shares and debentures. It is mandatory to add the term Public Limited or Limited to its name as a suffix.

There are Two type when it comes to Public Limited Company

1. Unlisted Public Limited Company:
A Public Company does not necessarily need to be a listed on stock market. An unlisted public company is one that is not listed on the stock exchange market. But it can have infinite number of shareholders. The shares of these shareholders will be considered as unlisted Shares. A public limited company gets incorporated as a unlisted company only.

2. Listed Public Limited Company:
Listed Public Limited Companies are the ones’ which are included or exchanged on a specific stock exchange. Whose shares can be traded publicly. There is a specific criterion which needs to be matched to make a public company listed from Unlisted.
  i. Net Tangible assets of company should not be less than 3 cr. in each of the preceding three full years.
  ii. On an average minimum of 15 crores of profit before tax in at least 3 years of the past 5 years.
  iii. Net worth of at least 1 crore in each of previous 3 years.
  iv. If there has been change in the company name. at least 50% of the previous year’s revenue should be after the name change.
  v. The shares issue size should not be more than 5 times of current net worth.



Benefits of Public Limited Company

Below are the list of advantages and benefits of forming a Public Limited Company

Multiple opportunities of funding

Public Limited companies can raise funds from individuals, other entities and as well as from financial institutions. The funds can be raised via equity shareholding, debentures and preference shareholding.

Limited Liability

Shareholders of the public limited company has given limited liability protection. In case of unexpected losses and liabilities of the company, personal properties of the shareholders are protected.

Spreading Risk

Since the shares are sold to public at a large scale, the unsystematic risk of the market is also shared across the shareholders.

Transfer of shares

Easy transfer of shares is one of the biggest advantages of a Public Limited Companies. The shares can be easily transferred from one shareholder to another, be it an Individuals or businesses.

Rapid Expansion

Since the risk is shared across the multiple shareholders, it gives perfect opportunity to grow and invest in new projects from the money raised through shares. Hence it gives opportunities to growth and rapid expansion.

Checklist/Requirements

Basic Requirement

• At least 7 shareholders – no cap to maximum no of shareholders
• At least 3 Directors - Maximum of 50
• At least 1 director should be resident of India
• Directors and shareholders can be the same person.
• Minimum paid up share capital INR 5 Lakhs.
• An address which acts as a registered address of the company

Documents requirement

For Each Director and shareholder
1. PAN card* (Mandatory for Indians & others if held)
2. Passport* (for NRI, Foreigners, and Indians if held)
3. Address proof (any 1 of) (Not more than 2 months old)
  a. Bank Statement
  b. Phone Bill
  c. Mobile Bill
  d. Electricity Bill

(Note - For NRI & Foreigners Documents issued by foreign authorities or signed outside India must be notarized & apostilled)

For Registered Address
  1. NOC from Owner*
  2. Rent Agreement*
  3. Utility Bill*

How to Register Public Limited Company?

Once the founders of the company finalize on the name of the company. Then the process of incorporation of Public Limited Company starts as below (Note: Name of the company can be different from the brand name; it is not mandatory to have same brand name as a company name)

Step 1: Application for DSC (Digital signature certificate) and DIN (Directors Identification Number)

Step 2: Apply for the Name reservation

Step 3: Drafting & filing MOA & AOA to register the public limited company

Step 4: Apply for the PAN and TAN of the company

Step 5: Issue Certificate of Incorporation along with PAN and TAN of the company

Key Deliverables

a. DSC of directors and shareholders

b. PAN and TAN number

c. Certificate of incorporation

d. MOA & AOA of the company

Public Limited Company incorporation

Why Choose Us

  Entrepreneur Friendly

We make the process so easy and fast that you will not even feel the headache of all the paperwork, and our professionals will provide you all the promised deliverable within a given span of time.

  Experienced Professionals

All our professionals are qualified and specialized in that particular work. Making sure no mistakes are done at the time of filings with the authorities so that company won’t have to pay any penalties due to mistakes.

  One Stop for All Your Requirements

We support you throughout the journey of your business, from the incorporation, Accounting and taxation support, Secretarial compliance support, and Legal support.

  Cost-Effective

We believe that cost plays a vital role in any company’s growth stage, that’s why we do not surprise our clients with hidden charges, you pay what you see in the initial proposal.


Frequently Asked Questions


Is DSC mandatory for Subscribers?
Yes, DSC! is mandatory for all subscribers and witnesses in eMoA(INC-33) and eAoA(INC-34). eMoA and eAoA shall be used only where the maximum number of subscribers do not exceed 7. In case the number of subscribers are more than 7, INC-7 shall be used and DSC is not mandatory in such cases.
Shareholders are the actual owners of a Public limited company; However, they appoint a board of directors who controls and make the decision about the business.
Compliance list for Unlisted Public limited company: 1. Board Meeting, 2. Appointment of cost auditor 3. Return of deposits, 4. Appointment of CEO, CFO, and CS. 5. Annual general meeting, 6. CSR Committee, 7. Director’s disclosure

Compliance list for Unlisted Public limited company: 1. Board Meeting, 2. Appointment of cost auditor 3. Return of deposits, 4. Appointment of CEO, CFO, and CS. 5. Annual general meeting, 6. CSR Committee, 7. Director’s disclosure
No, only private / unlisted public company or a partnership firm can be converted into LLP.
“India” can be used by foreign company which is incorporating its subsidiary company in India. The original name of the holding company as it is may be allowed with the addition of word “India” or name of any Indian state or city, if otherwise available. The words “Global” “International” can be used in the name of an Indian company.
A director shall be liable for the offences / non-compliances occurred during his tenure even after his resignation and disassociation with the company.
An individual can serve as an auditor for a term of five consecutive years. A firm can serve two terms of five consecutive years each, i.e., a total of 10 years as an auditor. Every company shall, at the first annual general meeting, appoint an individual or a firm as an auditor who shall hold office from the conclusion of that meeting till the conclusion of its sixth annual general meeting.
Every company shall in each year hold in addition to any other meetings, a general meeting of its shareholders as its annual general meeting for adoption of audited financial statements, declaration of final dividend, etc the first AGM of a company should be held within a period nine-month from the date of close of first financial year. In any other case, within a period of six months from the date of closing of the financial year.