Public Limited Company
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.
Minimum requirements to start a Public Limited Company Registration
- 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.
FAQS
Public Limited Company
Public Limited Company
To incorporate a Public Limited Company a minimum of seven members are required.
A public limited company can invite the public for the subscription of shares and debentures whereas a private limited cannot do this.
The transferability of shares has no restriction. Shareholders can transfer their shares freely.
Yes, GST registration becomes mandatory for the company’s credibility.
Scan and send identity proof and address proof of the proposed Directors. PAN Card is mandatory for Indian Nationals. Address proof of the registered office must be submitted. If it's a rental property, an agreement must be presented.
All directors must be 18 years or older. There is no nationality restriction, so foreign nationals can also be directors.
Yes, subject to Foreign Direct Investment (FDI) Guidelines.
Yes, Public Limited Companies must appoint an auditor within 30 days of incorporation after the first AGM.
Registrar of Companies expects applicants to follow guidelines. A good name includes a Brand Name, Business Activity, and Company Title (LLP, OPC, Pvt. Ltd., Public Ltd.).