Overview of Public Limited Company Registration

A public limited liability company allows limited liability to its proprietors and to its management team. But in the case of a public limited company, a firm can sell shares to investors which are considered as a beneficial act in raising the capital for the business. To establish a Public Limited Company, a minimum of three Directors are required and there is no cap on the maximum number of members. Importantly, it has more strict regulatory requirements when compared to a Private Limited Company. Public Limited Company is a different type of company but holds most of the characteristics of a private limited company. It enjoys more benefits such as ease of transferability, borrowing capacity, limited liability, and perpetual existence. Like any other companies in India, Public Limited liability is also registered according to the rules and regulations of the Companies Act, 2013. A Public Company appreciates the benefits of constrained liabilities for its individuals and has rights to offer its offers for raising the capital of the company. It can be joined with a least number of three chiefs and has more rigid rules and directions as compared to a Pvt. Ltd. Company. It must have a least number of seven individuals while there’s no constrain for the greatest number of individuals. It gives all the benefits of a private restricted company in conjunction with more straightforwardness and simple transferability of possession and shareholding. Title, offers, arrangement, number of individuals, administration and chiefs, etc separates any Open restricted company from the private restricted companies.

Advantages of Public Limited Company

Business Type For Investors Investors and other parties prefer Public Limited companies to invest their money as it is well structured and also transparent business structure. If anyone wants to raise capital for your business and to sell the ownership in the business, this type of company is what they should consider. Most Suitable Business For Heavy Investment Public ltd is company is the best business structure for heavy investment. Easy To Raise Funds And Loans Public Limited Company is like a person as it can list itself in various stock exchange markets in India and can raise capital from the stock market and from interested investors. It also enjoys wide options to raise minimum paid up capital for public company, bank loans and Institutional investors. Uninterrupted Existence A Public Limited Company has ‘perpetual succession’, which means it has uninterrupted existence until it gets legally dissolved. Being a separate legal person, a company is unaffected by the departure or death of any member, it continues to be in existence regardless of the changes in the membership of the company. Easy Transfer Of Shares Importantly, it is very easy to way out from a public company limited by guarantee, as only shares of the company have to be handed over to the investor or purchaser along with share transfer forms. Owning Property A Public Limited Company is a juristic person; it can own, acquire, enjoy and estrange, properties in its own name. There is no right to the shareholder to make any claim upon the property which is in the name of the company so long as the Public Limited Company is a going concern.

Checklist for registering a Public Limited Company in India

As per Company Act, 2013 any Public Limited Company ownership to be registered in India must meet the conditions mentioned below.

• * To form a Public Limited Company a minimum of seven members is needed.
• * There is no self-command on a maximum number of members.
• * At least one of the directors must be an Indian Territory Resident.
• * A minimum paid-up capital of around Rs 5 lakhs is required.
• * The shares assigned to the members are munificently transferable.
• * Public Limited Companies can raise funds or investments from the general public through open requests and invitations by selling the company’s shares and accepting funds or fixed deposits.
• * The name of the Public Limited Company should not bear any similarity or should not match to any name of the company or trademark that already exists. The company name should be unique anyways.
• * These types of companies are required to keep either public limited’ or private limited’ after their company names.