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.
Obtain Digital Signature Certificate
All incorporation / registration forms of a public limited company are required to be signed electronically by the applicant of the proposed company. Digital Signature Certificate (DSC) maintains the authenticity of the contents of the electronic forms and documents attached with such forms.
Obtain Director Identification Number
DIN is the unique number allotted to each director for his identification, having lifetime validity. Minimum three Directorsare required for Incorporation of public limited companyand hence minimum three Director Identification Number (DIN)are required before filing application of company.
The next step is to check whether the proposed names are available with Registrar of Companies (ROC).We can apply maximum Six names in order of preference while making application for name reservation to ROC.If the name is made available by ROC then the same is reserved for 60 days.
After the name is Approved by, application for registration/incorporation of public limited company is made to Registrar of Companies (ROC)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, issuesCertificate 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.
PAN and Bank Account of the company
Application for PAN Card of the company is made thereafter; it takes around 7-10 days to get the PAN Card. Further a bank account is also required to be opened in the name of the Public Limited Company for deposit of subscription amount.