Public Limited Company
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.
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
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 Digital Signature Certificate (DSC)
- Prepare SPICe+ form (Part A – Name availability and reservation request)
- Prepare SPICe+ Part B form (Company information i.e. directors, capital etc.)
- Prepare e-form SPICe+ MOA (INC-33) ,SPICe+ AOA (INC-34) and SPICe+ AGILE-PRO (INC-35)
- Download all the e-forms prepare online and affix DSC on all the e-forms.
- Attached the require documents with form SPICe+ and upload the e-forms to MCA portal.
- Verification of documents / forms by RoC
- Issue of Certificate of Incorporation by RoC
Advantages
1.RAISING CAPITAL
2.WIDENING THE SHAREHOLDER BASE AND SPREADING RISK
3.GROWTH AND EXPANSION OPPORTUNITIES
4.EXIT STRATEGY
5.EASY TRANSFERABILITY OF SHARES
Disadvantages
1.COMPLEX REGULATORY REQUIREMENTS
2.HIGHER LEVELS OF TRANSPARENCY REQUIRED
3.OWNERSHIP AND CONTROL ISSUES
4.PUBLIC DISCLOSURE OF COMPANY INFORMATION
5.INITIAL FINANCIAL COMMITMENT IS 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 |