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Public Limited Company
Public company, commonly known as a Limited Company, is generally suitable for a large business or diversified lines of business. This company can raise large amounts of capital from public and institutions by listing on Stock Exchanges.
It can also accept public deposits subject to prescribed guidelines. Shares are freely transferable by members and no prior approvals are required.
Minimum number of members required for formation of a public company are seven and there is no maximum limit.
It has a separate legal existence, and the liability of all the members is limited to the value of their shares. Usually there is a separation in Ownership and management of the business, with professional management teams taking charge to routine operations.
The conduct of a public company is governed by the strict laws, rules, and regulations:
- Ideal for a large business
- Limited liability of the owners and management
- Can raise large capital from Public and institutions.
- Strictly regulated by MCA and SEBI
- Attracts more stringent compliance requirement.
- Minimum Authorized Capital of ₹ 1 lac.
Requirements for registration of Public Limited Company
- Name approval by ROC
- Obtaining Director Identification Number (DIN) and Digital Signature Certificate (DSC)
- KYC documents of all the Promoters
- Registered Office: It is mandatory to have a permanent address of registered office with the latest address proofs.
- Memorandum of Association (MoA), Articles of Association (AoA), and other necessary documents
- At least 7 Directors are required for incorporation of a public limited company
- Simultaneously applying for the PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number) of the company along with the submission of company registration forms.
- Opening a company-specific bank account in the name of the company, essential for ensuring the smooth functioning of the business.
- Getting other relevant approval from respective authorities.
Note: For Non-Resident Indians (NRI) or foreign nationals, it is necessary to have the documents of partners notarized.
