ABOUT PUBLIC LIMITED COMPANY
The Public limited company is the company which is incorporated or registered under the Companies Act, 2013. It is different from the Private Limited Company, and therefore its compliance also changes. The shares of a Public limited company is issued to the public. These shares are then freely traded. Public Limited Company is also called as publicly held company. It can be listed on stock exchange, but for Private Limited Company it should first get converted in to a Public limited Company, only then it can be listed on stock exchange. In Public limited company, there should be a minimum paid up capital of Rupees 5 Lakhs, minimum 3 Directors and a minimum number of shareholder should be 7. Compliance for the Public Limited Company is also more as compared to other company.
There are many of the characteristics of the Public Limited Company like;
- Directors: According to the Companies Act, 2013, to start up a Public Limited Company you must require a minimum of 3 Directors and there can be an increase in a number of Directors in the future.
- Limited Liability: The liability of each shareholder is limited. In simple words, a shareholder of a Public Limited Company isn’t personally responsible for any loss of the company for any amount greater than the amount invested by them.
- Paid Up Capital: A Public Limited Company is required to have a minimum paid-up capital of Rs. 5 lakh or such higher amount as prescribed under the act.
- Prospectus: A Prospectus is a legal document which is drafted by Public Limited Company that includes securities for sale, investment shares and many more. This is made for the Public especially.
- Name: This requirement comes under the Companies Act, 2013 which is a must for all the public companies to add the word “limited” after their name.
Advantages of Public Limited Companies
There are many benefits of the Public Limited Company Registration like;
- More Capital: It’s a very good benefit that any person can invest in a Public Limited Company because of which the company capital will be increased more than before.
- Continuity of Existence: The life of the Public Limited Company is never stopping it. It is not affected by the status of the shareholders and even after the death of the shareholder. This Public Limited Company continues to exist.
- Borrowing Capacity: A Public Limited Company enjoys an unlimited source for the borrowing of funds. The Public Limited Company can issue debentures, equity and can also accept deposits from the public.
Documents Required For Public Limited Registration
- Copy of PAN Card of directors
- Passport size photograph of directors
- Copy of Aadhaar Card/ Voter identity card
- Copy of Rent agreement (If rented property)
- Electricity/ Water bill (Business Place)
- Copy of Property papers (If owned property)
- Landlord NOC (Format will be provided)
Minimum Requirements for Public Limited Registration
- Minimum 3 Directors
- Minimum 7 shareholders
- DIN for all Directors
- Minimum 5 lac share capital