What is a Public Limited Company?

Public Limited Company is the biggest type of business in India. An open restricted organization can be recorded on stock trades and would thus be able to welcome assets from open. Additionally, there is no limitation with regards to the most extreme no. Of investors in an Public Limited Company.

What are the Documents required for Formation of Public Limited Company?

  • PAN card and Residence Proof of directors of the company
  • passport-size photograph
  • Copy of Rental Agreement / EB Card Copy of Registerd Office
  • Specimen signature (blank document with signature [directors only])
  • Copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
  • copy of Passport (In case of Foreign Director)

What is the process for Incorporation of Public Ltd Co.?

DIN&DSC: Digital signature for at least one director is required. If any director already possess DIN it can be used. Else, application for DIN can be made.

Name Approval: 4-6 proposed names should be provided that should be unique and suggestive of company business.

Document Submission: Duly filled Application along with required documents should file with the ROC.

Company Registered:Once your Company is incorporated. Incorporation Certificate will be issued

Advantages

Perpetual Existence

  • A company continues to exist irrespective of the status of the owners.

No Restriction on share transfer

  • There is no restriction on transfer ability of shares. A shareholder can transfer his shares to any person.

Limited liability

  • A shareholder is liable only to the extent of unpaid amount on his holding.

Greater borrowing power

  • Companies have better avenues for borrowing funds unlike other forms of business.

Separate Legal Identity

  • A company enjoys separate legal identity unlike partnership firms.

Access to public funds

  • Public company can invite public to subscribe its shares unlike a private limited company.