Public Limited Company
A company registered under the Companies Act, 2013 with statutory minimum capital requirements Rs.5 lacs.A Public limited company enjoys unlimited source for the borrowing of funds. The public limited company can issue debentures, equity and can also accept deposits from the public. Financial institution even prefers to render financial assistance to large public limited company. A Public Limited Company has more credibility and transparency in business than a private limited company. Public limited company has high financial exposure to source capital from the Public as Equitsy or debenture or deposit. A public limited company can register with a minimum of three Directors, and Public limited always preferred if you have a broad vision from startup to IPO.
Our services for establish your proposed Public Limited Company
- a) Digital Signature Certificate (DSC)
- b) Director Identification Number (DIN)
- c) Name reservation of your proposed OPC company
- d) Drafting of MOA & AOA
- e) Dedicated CA/CPA/CS/Lawyers
- f) Trademark search for business and registration
- g) MCA Government Fees and XBLR filling
- h) Obtain Corporate Identification Number (CIN)
- i) PAN No. of OPC
- j) Business Idea corroboration.
- k) GST Registration.
- l) VAT & CST Registration
- m) ESIC & PF Registration
- n) SSI Registration.
- p) Import-Export Code Registration.
- q) Drafting Lease Deed and its registration.
- r) Lease Deed registration.
- t) Assistance to open your current account
- u) Assistance for Seed Capital / Angel Investor.
Documents required from all Directors for registering Public Limited Company
- a) Copy of election ID card or Passport or Driver's License
- b) Copy off PAN Card
- c) Copy of latest bank statement
- d) Copy of Telephone or electricity bill
- e) Passport-sized photograph of all directors and shareholder
- f) Scan copy of Signature (signature should same as on PAN Card
- g) Scanned copy of Notarized Rental Agreement
- h) Utility bills for proposed registered office (Residential or Commercial).
- i) Scan copy of Rent Agreement/Lease Deed
- j) NOC from Owner/Landlord.
- a. Brand valuation
- b. Improve business credibility
- c. Attract funding through FII & angel investor
- d. Limited liability
- e. Continuous existence.
- f. Borrowing capacity.
- g.Raising capital through public issue of shares
Merit of Public Limited Company
a.Brand valuation
b.Improve business credibility
c.Attract funding through FII & angel investor
d.Limited liability
e.Continuous existence.
f.Borrowing capacity.
g.Raising capital through public issue of shares
h.Widening the shareholder base and spreading risk
i.Stock Exchange Listing
j.Growth and expansion opportunities
k.Prestigious profile and confidence
l.Transferability of Shares
Exit Strategy.
Demerit of Public Limited Company:
● More regulatory requirements:--
o To help protect shareholders, the legal and regulatory requirements for a public limited company are more onerous than for private limited companies. For example, additional restrictions include;
o A trading certificate must be obtained from Companies House before the company can trade (there is no such requirement for a private company);
o The need to have at least two directors (only one is required in a private company);
o More onerous rules apply concerning loans to directors;
o A suitably qualified company secretary must be appointed;
o As well as higher transparency around accounts, they must be produced within prescribed time of the end of the financial year;
o AGMs must be held, whereas in a private company decisions can more often be made by resolution;
There are various additional restrictions on the company’s share capital and limits on pre-emption rights and dividends
● Higher levels of transparency required
● Ownership and control issues
● More vulnerable to takeovers
● Short-termism
● Initial financial commitment is higher
Documents required from all Directors for registering Public Limited Company
a)Copy of election ID card or Passport or Driver's License
b)Copy off PAN Card
c)Copy of latest bank statement
d)Copy of Telephone or electricity bill
e)Passport-sized photograph of all directors and shareholder
f)Scan copy of Signature (signature should same as on PAN Card)
g)Scanned copy of Notarized Rental Agreement
h)Utility bills for proposed registered office (Residential or Commercial).
i)Scan copy of Rent Agreement/Lease Deed
j)NOC from Owner/Landlord.
