Public Limited Company

A Public limited company is the ideal choice of corporate entity for medium and large-sized businesses that raise equity capital from the public.

Everything you should know about a Public Company

  • Public limited company shares are offered to the general public at large i.e. anyone can invest in a public limited company. Hence, improves the capital of the company
  • Being listed on a stock market ensures that mutual funds, hedge funds, and other traders take note of the business of the company. This may result in better business opportunities for the Public Limited Company.
  • Due to less risk, there is a perfect opportunity for growing and expanding the business by investing in new projects from the money raised through shares.
  • Since the shares are sold to the public at large the unsystematic risk of the market is spread out.
  • The liability of each shareholder is limited which means a shareholder of a public limited company isn’t personally responsible for any loss or debts of the company for any amount greater than the amount invested by them.

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    What is the minimum number of members are required to start a Public Limited Company?
    To incorporate a Public Limited Company a minimum of seven members are required. At the time of incorporation minimum,7 shareholders.
    What is the summarised difference between a Private and Public Limited Company?
    Both the companies differ in terms of people involved, regulatory compliance. One of the major differences is a public limited company can invite the public for the subscription of shares and debentures whereas a private limited cannot do this.
    Is it allowed to transfer the shares in a Public Limited Company?
    The transferability of shares has no restriction in a Limited Company. The shareholders can transfer their shares freely.
    Is GST required for a Public Limited Company?
    Yes, Good and Services registration becomes mandatory compliance for the company’s credibility.
    What is the procedure for online registration of a Public Limited Company in India?
    The following documents can be scanned and sent to us for a smooth online process. Identity proof and address proof is mandatory of the proposed Directors of the Company. PAN Card is mandatory for Indian Nationals. Also, the address proof of registered office must be submitted and in case of a rental property an agreement or must be presented while incorporating. Get started
    Is it necessary to have all the Indian directors in a Public Limited Company?
    All the directors of a Limited Company must of 18 years above. There is no limit on terms of nationality of a director. Therefore, a foreign national can be the director of the company irrespective of residency and citizenship status.
    Can NRI’s of Foreign Companies hold shares of a Public Limited Company?
    Yes, NRIs / Foreign Nationals / Foreign Companies can hold shares of a Limited Company subject to Foreign Direct Investment (FDI) Guidelines.
    What is ADT-1? Is this compliance mandatory for a Public Limited Company?
    Public Limited Company is required to have its accounts audited by a practicing Chartered Accountant. The appointment of the auditor must be done after thirty days of incorporation after calling for the company’s first AGM.
    What is a Public Limited Companyname search? Why is it important for new Public Limited Company registration?
    Registrar of Companies expects all the applicants to follow a certain guideline before a name is applied. The applied company name is suggested to have a Brand Name, Business Activity, title (LLP, OPC, Pvt. Public Ltd.). Check for more updates.

    Minimum requirements to begin a Public Limited Company

    • Minimum 3 Directors
    • PAN Card of Directors
    • DIN of Directors
    • Address Proof of Firm
    • Minimum Authorised Capital INR 5 Lakhs
    • Minimum 7 shareholders
    • Digital signature for two of the directors

    DealTax Deliverables

    • Certificate of Incorporation
    • DIN of Directors
    • Bank Account Opening Document Support
    • Digital Signature of Directors
    • PAN Card
    • Customized Incorporation Master File
    • MOA + AOA
    • LLP TAN/TDS Number
    • GST Certificate (If Needed/Applicable)
    • Application filling for Certificate of Commencement of business
    • Assistance with further compliances