What do you understand by the term Public Limited Company?
Is your business idea falls in medium and large size business category? Do you have minimum 7 persons to be appointed as director and Rs. 5 Lakh as paid-up capital with you? Congrats! You can start your own company and can register it as Public Limited Company. Public Limited Company is registered under The Companies Act 2013 and is considered as legal entity by the Ministry of Corporate Affairs of India. Public Limited Company has right to trade their shares in stock market (BSE or NSE) or issue fixed deposits. Public Limited Company is best solution for entrepreneurs who are willing to raise funds in a large amount as this type of registration allows rising of funds through shares.
Contact us now and get your company registered by hassle-free, cost effective and quick way.
What are the basic requirements to Start a Public Limited Company?
Choose Unique Name
As per MCA rules, unique name is must to register your company which is not matching with already registered companies or trademark from the same industry sector and your name must be suffixed with word 'Limited'.
Collect Rs. 5 Lakh as Capital Requirement
Rs. 5 Lakh is needed as a minimum paid-up capital to register as Public Limited Company.
Group Minimum 7 Persons as Director
To start a Public Limited Company, minimum 7 persons or shareholders or directors are must.
Select One Director of Indian Nationality
Out of the 7 directors or shareholder appointed while starting a public limited company, one director must be resident of India.
Process of Public Limited Company Registration
- ⦁ Choose directors and submit their documents
- ⦁ Apply for Digital signature (DSC)
- ⦁ Submit all legal documents
- ⦁ File your documents with ROC
- ⦁ Receive certificate of incorporation
- ⦁ Move ahead and strategize for your business enhancement
Investment:
- 25000*
Professional fees
Advantages of Public Limited Company
As public limited company is open to all for investment, anyone can invest in it using its shares. Thus it’s very easy for public limited company to raise more capital to fulfill operational and managerial needs of business. Being listed on stock market it also has great opportunities to attract potential investors and thus tap new business opportunities with them.
Directors don’t have access to any company liabilities over the investments made by them. Also director’s personal savings and assets are not under risk if company failed to repay the loan.
Rights and authorities of one director or shareholder can be easily transferred to new director or shareholder.
Dividends are paid by public limited company to its shareholders through shares purchased by them. Thus shareholders enjoy benefit of less tax deduction when dividend is paid to them
As public limited company is considered as separate entity, no one has right to claim ownership of company’s property instead company on its own is sole owner of property.
