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

Advantages of Public Limited Company


PERPETUAL EXISTENCE

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

LIMITED LIABILITY

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

SEPARATE LEGAL IDENTITY

A company enjoys separate legal identity unlike partnership firms.

NO RESTRICTION ON SHARE TRANSFER

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

GREATER BORROWING POWER

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

ACCESS TO PUBLIC FUNDS

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

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

FAQ's

A public limited company is required to have minimum 7sharehodlers.
ID proof, Residence proof and PAN card of all the partners along with a Partnership deed signed by all the partners.
Only a registered Partnership firm can file a suit in any court against the firm or other partners for the enforcement of any right arising from a contract or right conferred by the Partnership Act. A Registered Partnership firm can claim a set off or other proceedings in a dispute with a third party.
A partnership deed is a written agreement entered into by all the partners of the firm which specifies the terms under which partnership is to be carried on.
Tax audit under Income Tax Act is required for only few assessees.