Public Limited Company

Advantages of Public Limited Company Registration Online in India

Here are the benefits provided to the company with Public Limited company registration

•     Limited liabilities for the shareholders of the company
  

Shareholders of public companies benefit from restricted liabilities, which protect their assets and prevent them from being utilized to pay off the company's debts and losses. However, the stockholders are still liable for whatever legal violations they may have committed. This privilege is enjoyed by all members, directors, and shareholders, and no bank, creditor, or government agency may confiscate their assets.

•     Perpetual Succession
  

A perpetual succession corporate entity is one that is a public limited corporation. This indicates that the firm will continue to operate even if one or more of its shareholders, directors, or members pass away, retire, go insane, or become insolvent.

•     Improved capital of the company
  

The general public is welcome to purchase shares in a public limited corporation. Therefore, anybody can make an investment in a public business that raises the proposed firm's capital.

•     Borrowing Capacity
  

A public corporation has access to an infinite number of avenues for borrowing money. By selling its shares, it can issue stock, debentures, and take deposits from the general public. Additionally, the majority of financial institutions believe public corporations to be more significant than other unregistered businesses.

•     Fewer risks

The public's ability to purchase shares in public corporations reduces the market's exposure to systemic hazards.

•     Better opportunities for growth and expansion of the company:
  

The market's exposure to systemic risks is diminished by the public's capacity to acquire shares in public businesses.

Documents required for Public Limited Company registration online in India

An applicant has to collect all these documents to file along with the incorporation application:

·         Identity Proof such as Aadhar card, PAN card, Driving License, Voter Id of all the designated directors and shareholders.

·         Address Proof of all the proposed directors and shareholders of the company.

·         PAN card details of all the directors and shareholders

·         Utility bill such as telephone, gas, water or electricity bill of the registered office as a residential proof of the business place. It should not be older than 2 months.

·         An NOC or No Objection Certificate from the landlord of the business place.

·         DSC or Digital Signature Certificate of the designated directors

·         Memorandum of Association (MOA) and Article of Association (AOA)

Features of Public Limited Company Registration

Here are some important features of Public Limited Company:

    Number of Directors in the company

    As stated in the provisions of the Companies Act, a public company must have a minimum number of 3 directors to incorporate a company whereas there is no restriction on the maximum number of directors.

    Name of the Company

    All the Public limited companies must add “Limited” word at the end of their name. it is denoted as an identity of a public company.

    Prospectus of the Company

    Prospectus of the company is mandatory for the public limited companies. It is issued by the proposed company for its general public. It is a note of comprehensive statements of works and affairs of the company. However private companies have no such compliances as they don’t have rights to invite the public for their shares.

 Paid-up Capital

    As per the requirements of the act, no minimum capital required for the registration.

What is the difference between the Public limited Company and Private Limited Company?

There are various points of differences between both these companies. Here are some chief differences between both:

Point of difference	Public Limited Company	Private Limited Company
Members	Minimum: 7   Maximum: No Limit	Minimum: 2   Maximum: 200
Directors	Minimum: 3	Minimum: 2
Public invitations	Yes	No
Minimum Capital Income	No	No
Issuance of Prospectus	Required	Not Required
Name differences	Must have “Limited” at the end of its name	Must have PVT LTD at the end of its name
Mandatory Statutory Meeting	Yes	No
Managerial Remunerations	There are no as such restrictions	Cannot exceed the limit of 11/% of the net profit
Stock Exchange	Is listed on stock exchange and stock trade is carried out publicly.	Not listed on stock exchange neither carry out stock trade publicly.