Public Limited Company also called public corporation or widely held company is a type of legal business entity which can be incorporated by seven or more persons. There is no limit for maximum number of members i.e., shareholders in such type of companies. Further these companies can invite capital and deposits from the public. There is no minimum requirement of capital to be invested at the time of incorporation of the company. Any amount of share capital can be invested as per the will of the Promoter/Shareholders. These companies shall have minimum threedirector and seven shareholders.
Registration of Public Limited Company make more prestigious profile, greater access to capital and the ability to be able to advertise and sell your shares to the public. Many entrepreneurs Incorporate a Public Limited Company so that they will be able to sell shares to the public through a Stock Exchange and get investment for the company. Public company can be listed as well as unlisted. Listed public can issue shares through an initial public offering (IPO), can be traded on stock exchanges.
Limited Liability Protection
The liability of members extends only to the contribution of the nominal value of the shares held and not paid by them. It has the words ‘Limited’ as part of its name.
Never ending characteristic
A company incorporated under Companies act never dies. A company can, only be closed with the consent of shareholders or by the process given in Law.
No Criteria of minimum paid up capital
Requirement of minimum capital to Start a Public Limited Company has been dispensed with by the Ministry of corporate affairs.
Shares can be listed on Stock Exchange
Shares of Public Limited Company can be listed on stock exchange and such shares can be traded by public at large.
A Public Limited Company hold the privilege of being separate from its directors and shareholders. Member and directors cannot claim the property vested in company’s name.
Name of the Company is protected
Identical, similar or nearly resembles are not allowed by registrar of companies while applying for reservation of name. Once your company is registered, any other person cannot register another company, with the similar or resembling name.
Can access money from public
A Public Limited Company can accept deposit from public by issuing Shares/debentures to the public.
The proposed names for the public limited company first need to be checked if they are available for registration or not. We can apply for maximum two name at a time in order of preference. The name application is made to Registrar of Companies, Central Registration Centre(CRC), once the approval is received from ROC, name is available for 20 days.
Obtain Digital Signature Certificate
DSC is required to sign forms electronically for incorporation/ registration of Private Limited Company. It ensures security and authenticity of the documents and can be obtained from any of the government approved vendor like MTNL, TCS, IBDRT, NIC, e-Mudhra, n-Code solutions
Company Incorporation (SPICE)
After the name is Approved by ROC/incorporation of public limited company is made to Registrar of Companies, Central Registration Centre(CRC), along Memorandum and Article of Associations, declaration, affidavits etc. Minimum Seven persons are required for Incorporation of public limited company.
Certificate of Incorporation
ROC then scrutinizes the incorporation form and documents, if ROC finds the documents are in order, issues Certificate of Incorporation which is the Registration certificate of public limited company. After receiving the certificate of Incorporation the public limited company is set to roll out its function.