PUBLIC LIMITED COMPANY

The Companies Act 2013 categorizes companies as public limited companies and private limited companies. According to the provisions of section 2(71), a public company is a company that is not a private company. If we see the definition of a public company it is clear that a public company does not have the restrictions of a private company in its articles, which means a public company:

  • Can transfer its shares freely
  • Have a minimum of 7 members and no limit for the maximum number of members
  • Can raise funds from the general public.

A public company has to put the words “limited” in its name.

THE ADVANTAGES OF PUBLIC LIMITED COMPANY

A company form of business has many benefits over a sole proprietorship or partnership form of business. We already know a company form of business provides

More opportunities to grow and diversify but most of the business owners go for a private limited company as it gives more freedom to operate a business. A private company has to comply with fewer regulations as compared to a public company but incorporating a public company has its own benefits.

A public company does not have the following restriction, prohibitions, limitations in its articles :

  • A shareholder in the Public company can freely transfer his shares in the company
  • A public limited company can issue its shares to the general public.
  • The Public  limited company has no limit for a maximum number of members
  • A public limited company has more opportunities to raise funds as the investors have more confidence in the public company.
  • As a public limited company Is always in the sight of regulators there are fewer chances of fraud in the company and more scope for investor protection hence better the image of the company and public trust.
  • A public company raises money from the public by listing itself on the stock exchanges. It provides exit opportunities to the investors. Hence greater liquidity

 Public Limited Company Registration Process

A public limited company can be formed with a minimum of 7 members and a minimum of 3 directors in the company. The person desiring to register his company can get his company registered through the Ministry of Corporate Affairs portal. That is www.mca.gov.in. A company is needed to be registered with the registrar of companies or ROC. RoC keeps all the records regarding all the companies in India.

How to register Online Public limited company?

There are certain requirements for company registration

These are:

  • Digital signatures or DSC of all the subscribers and DIN of the person desiring to be the directors of the company. All the forms which are filed on the mca portal require Digital signatures of the signatories
  • After getting the DSC the form Spice+ is filled on the portal with the required documents as attachments.

Documents required for registering a company

For ID proof of company registration

  1. Aadhar Card
  2. PAN card
  3. passport

For Address proof of company registration

  1. Latest 2 months Utility bills such as Electricity Bill
  2. Water Bill, bank statements of the subscribers

Address proof of company registered office –

  1. Latest 2 Months Electricity or water bill and if the pace is rented then Rent Agreement
  2. NOC from the owner

 

 Why Companify?

Registering a company is a simple process but it requires professional guidance. We at companify help you to take a step forward in owning your company by providing you with a hassle-free process of company registration. our team of experts will guide you at each step so that you make the right decision as per your need. We have company registration packages tailor-made for your requirements.


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