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Company Registration is governed by the provisions of the Companies Act, 2013, and requires a minimum composition of seven members and three directors. Further, company registration comes with benefits like perpetual succession, separate legal entity, etc. A Public Limited Company is a publicly maintain medium scale enterprises who wish to raise the equity capital from the general public. A public Company enjoys the benefits of limited liabilities for its members and has rights to sell its shares for raising the capital of the company. It can be incorporated with a minimum number of three directors and has more stringent rules and regulations as compared to a Pvt. Ltd. Company. It must have a minimum number of seven members whereas there is no limit for the maximum number of members. It provides all the benefits of a private limited company along with more transparency and easy transferability of ownership and shareholding. Name, shares, formation, number of members, management and directors, etc differentiates Public limited company from the private limited companies. There is 5 lakh minimum paid-up capital cost for a public limited company and has never-ending existence. A Public Limited Company contain any relationship with the public; they are permitted to ask for any collateral from the public or public sectors. In a Public Limited Company, people are entitled to transfer and sell shares. Every Public Limited Company must use "Limited" after their name.
There shall be present at least three Directors and seven Shareholders for the registration of a Public Limited. Both Directors and Shareholders can be similar person.
In Public Company registration, the liability of the shareholder and Directors is limited to the extent of the shares they hold in the company. For example, if the company suffers from any financial contingencies because of primary business activity, then in such case personal assets of shareholders and Directors will not be attached by the Banks, creditors, and government.
Shareholders and Directors may come and go, but the existence of the company continues to exist. i.e. the absence or movement of any shareholder in the company will not affect the existence of the company.
The company has an unlimited source of raising fund through Public which results in pursuance of new projects and for capturing the new market
The shares of a public limited company are easily transferable. Shares of the company are listed on a stock exchange; the shareholders find it is easy to transfer the share in the company. In the case of Public Company Registration, shareholders are less bound to remain with the company, which results in making people more willing to invest.
The capital can be raised from various source like IPO , Share Issue, Sell of securities , this company raise large fund form publics and markets.
The name should not resemble to any of the existing entities and shall not contain any offensive words detrimental to the interest of the society at large. Also, the name should necessary align with the objects of the company and must contain the word “Limited”.
A minimum number of 7 members are needed to run a Public Company, out of which 3 members should be the company’s directors. Relatives and Spouse can be directors or members. Maximum numbers of member can be unlimited and maximum director can be limited in Public Company.
To start a Public Company, a minimum of Rs. 5 lacs is required as equity share capital.
The object of the Public Company shall be accordingly to business nature and as per the rule and act governed by Law. Any other object in its MOA shall be void.
There are many difference between Public Limited Company and Private Limited Company. Here we understand some major point of difference through a table.
Since the registration process is online, hence there is the requirement for Digital signatures of all the Directors and Shareholders.We provide seven DSCs in our package of Public Company Registration.
Once the name is finalized, the application shall be made in Form SPICE-Part A. The form is a replacement of earlier Form RUN and provides the option to apply for two names Prepare all requisite documents MOA, AOA, INC 9, INC 10, DIR 2 to be filed with the ROC. These must mention the main objective of incorporating a company.
Obtain an incorporation certificate with the corporate identification number (CIN). It usually takes 7-10 days to form a company..
The MOA is the constitution of the Company and defines various clauses mandatory to bring the company into existence such as Name clause, object clause, registered office clause, liability clause, subscription clause and capital clause.
The Ministry, after being satisfied, that the documents and details submitted in the application are correct and gives a true and fair view of the intentions of the applicant, shall grant the Certificate of Incorporation (COI) along with PAN and TAN.
Within 180 days of incorporation of the Company, a declaration, attested by the Director of the Company, shall be filed with ROC that each subscriber to the memorandum has consented to the share value taken by them.
Soon after the Public Limited comes to the existence, there shall be appointed before the first Annual General meeting of the Company, the statutory auditor who shall hold office till sixth AGM until and unless ratified or a resignation is served.
Like change in directors, change in address, increase in capital, etc. shall be done as on date basis.
