Public Limited Company

    Public Limited Company Rs. 13,999/- + Govt. Fees No Hidden Charges Duration-8 to 10 days

    The Company defined under clause 71 of the Companies Act, 2013, a public company which:-

    1. is not a private company.
    2. has a minimum paid-up capital of Rs. 5 Lakhs or such higher capital as may be prescribed.
    3. is a private company but subsidiary of a public company.

    ADVANTAGES OF A PUBLIC LIMITED COMPANY

    There are a few sizeable advantages to having a public limited company. Limited Liability for shareholders. The business is viewed as a separate legal entity. This means that even if a shareholder(s) leaves the PLC or dies, the business can continue. Ability to raise a large amount of capital. Public limited companies are able to raise large sums of money because there is no limit to how many shareholders a PLC can have. The shares of the PLCs are freely transferable. This provides liquidity for shareholders.

    DISADVANTAGES A PUBLIC LIMITED COMPANY

    COMPANY:-Although there are profitable advantages to forming a public limited company there are some distinct disadvantages. There are many legal formalities for starting a public limited company. There must be at least 7shareholders before the PLC can be formed. Accounts for PLCs must be filed within 6 months of the year’s end. There must be at least 3 directors. The company’s secretary must be certified. In order to protect public investors, there are many controls and regulations that the business must follow. There is a possibility that the original owners can lose control of the public limited company in the issue of a dispute or violation. Some public limited companies can grow very large. As a result, many can suffer from mismanagement and slow decision making.

    Frequently Asked Question

    The Public Limited Company is a wider form of the limited company, which has no restriction on the maximum number of shareholders, listing its shares in the stock market, transfer of shares, and raising funds from public and accepting public deposits; all of these activities cannot be done by a private limited company. Again, unlike a private limited company, a public limited company is governed and managed by a Board of Directors constituted as per the unanimous consent of the shareholders. However, a public limited company has much more compliance burden, as compared to that necessary for a private limited company.

    For setting up a public limited company anywhere in India, there are required a minimum of seven Shareholders and Three Directors; the directors can also be shareholders. The requirement of the minimum paid-up share capital worth INR 5 Lac, has been removed by theCompanies (Amendment) Act, 2015.
    As a public limited company deals with public money, it has to make rather heavy compliance strictly, which are bulkier than those performed by a private limited company. Apart from the regular compliances related with income tax, there are many periodic and annual compliance to be made by a public limited company with ROC/MCA, SEBI, RBI, etc. These regulatory liabilities are in addition to securing and promoting steadily the profits and welfare of all shareholders of the public limited company.

    In addition to enjoying all those features and facilities which a private limited company relishes, a public limited company is entitled to go public, issue its shares in the stock market, or accept public deposits. The following are the main and most significant exclusive features of a public limited company:

    • A public limited company can have a rather huge magnitude of capital, much more than that gathered by a private limited company.
    • It is legally authorized to trade on stock exchanges.
    • There is no limit to the maximum number of shareholders in a public limited company.
    • The shareholders of a public limited company have limited liabilities, limited roughly to the face value of the shares they own. Again, shareholders do not have to take part in the day-to-day management of the business of the company.
    • Shareholders of a public limited company are entitled to transfer their shares freely without needing the consent of someone.

    Getting DSC > Getting DIN > Name Search and application for Name Availability.> Drafting of BBye-Laws(MOA & AOA)> Filing of various forms.

    A Digital Signature establishes the identity of the sender or signee electronically while filing documents through the Internet. The Ministry of Corporate Affairs (MCA) mandates that theDirectors sign some of the application documents using their Digital Signature. Hence, a digital signature is required for all Directors of a proposed Company.
    1. Seven promoters (shareholders) 2. Three directors 3. The authorized capital of Rs.5,00,000 4. DIN (Director Identification Number) for all the directors 5. DSC (Digital Signature Certificate) for all the directors 6. Affidavit for non-acceptance of deposits from all the promoters/directors.