Characteristics of Public Limited Company
Directors
As per the provisions of the Companies Act, 2013 to start a public limited company, a minimum of 3 directors are required & there is no restriction on the maximum number of directors1. Members– To start a company, a minimum number of 2 members are required and a maximum number of 200 members as per the provisions of the Companies Act, 2013.
Limited Liability
The liability of each shareholder is limited. In simple words, 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; contrary to partnerships and sole proprietorships, where the partners and business owners are jointly and severally liable for the debts of the business. However, this characteristic of a public limited company does not offer immunity to the shareholders. The shareholders will be held responsible for their own illegal actions.
Paid up capital
A public limited company is required to have a minimum paid-up capital of Rs 5 lakh or such higher amount as prescribed under the act.
Prospectus
Is a comprehensive statement of the affairs of the company issued by a public limited company for its public & there is a requirement under the Act for public limited companies to issue a prospectus. However, there are no such provisions for Private Limited Companies. This is because private limited companies cannot invite the public to subscribe for their shares.
Name
It is a compulsory requirement under the Companies Act, 2013 for all the public companies to add the word ‘limited’ after their name
Procedure to register Public Limited Company
Once a name for the company is decided, the following steps have to be taken by the applicant
Apply for DSC (Digital Signature Certificate) and DIN (Director Identification Number)
Apply for the name availability
File the MOA and AOA to register the private limited company
Apply for the PAN and TAN of the company
Certificate of incorporation will be issued by RoC with PAN and TAN
Open a current bank account on the company name
Documents required to register a Private Limited Company
Director’s Address Proof
Latest Telephone Bill /Electricity Bill/ Bank Account Statement of Shareholders and Directors.
F.A.Q
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How many persons are required to incorporate public limited company?
A Public Limited Company must have a minimum of three Directors and seven shareholder
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Do I have to Present in Person to incorporate a public limited company?
No, you do not have to be present at our office or appear at any office for the registration of a Public Limited Company. All the documents can be scanned and sent through email to our office. Some documents will also have to be couriered to our office
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What are the statutory compliance required for Public Limited Company?
A limited company must hold a Board Meeting at least once in every 3 months. In addition to the Board Meetings, an Annual General Meeting must be conducted by the Limited Company, at least once every year
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Can NRIs/Foreign Nationals be a Director in Public Limited Company?
Yes, a NRI or Foreign National can be a Director in a Public Limited Company after obtaining Director Identification Number. However, at least one Director on the Board of Directors must be a Resident of India
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What are the Requirements for Public Limited Company Registration in India?
In India, You can set your Public Ltd. Co. anywhere but there are minimum 7 shareholders and three Directors required. The Directors can also be shareholders.
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