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Features of Public limited company registration in India

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In this blog, we have discussed about the features, advantages and the benefits of forming a public limited company in India. – PowerPoint PPT presentation

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Title: Features of Public limited company registration in India


1
Features of Public limited company registration
in India
  • In this blog, we have discussed about the
    features, advantages and the benefits of forming
    a public limited company in India according to
    the user perspective.

2
Features of Public limited company
registration in India
  • Public limited company registration is the most
    predominant types of company formation in India.
    The public limited companies are registered or
    incorporated under the companies act, 2013
    contains many special features for the business
    people. It can be the most preferred choice of
    business, if you are planning to raise funds from
    the general public through Initial public
    offering (IPO) because these public companies
    are privileged under the Securities Laws to
    access Capital Market.

3
  • As a result, the public companies are also
    considered to be more transparent business model
    compared to other business structures. It gives
    investors great features of transferring their
    ownership in the company without any hassle by
    just selling the shares. Public Limited
    Companies are the destination point for Foreign
    Direct Investment (FDI). Because, they are the
    areas open for public limited companies to
    attract foreign loans and equity participation
    under the foreign investment laws.

4
Features of public companies
  • Public Limited Companies have following features
  • It allows a substantial degree of separation
    between the operations and ownership.
  • One can provide stock ownership to employees.
    Moreover, Limited companies are allowed to this
    feature of distributing their stocks among the
    employees.
  • In fact, Public Limited Companies can list its
    shares on Indian Stock Exchanges such as National
    Stock Exchange (NSE), Bombay Stock Exchange (BSE)
    and so on.
  • Only Public Limited Companies are allowed to
    Deposits from public under Companies Act, 2013.

5
Advantages of Public limited companies
  • Ease to issue shares to the publics.
  • Reliability in the worth of shares.
  • Able to implement the policies of distribution of
    workload.
  • The control system helps a lot in building a team
    work
  • Able to raise large capital
  • Easy to have the business growth while using
    funds for the public.

6
  • Besides there are more benefits in registering
    the company as public limited.  Capital raised
    from the public is the initial kind of safe
    source of capital which is permanent and no need
    pay interest. It is easy from a company to grow
    its business while using the same raised funds
    where the roles and the obligations of the
    management is limited.

7
Public companies requirements
  • Public Limited Company is company which is the
    best choice where a huge investment is desired
    from public. Moreover, these companies can go for
    the listing of its share in the stock market as
    it has no limit on its number of shareholder and
    can fetch from public through IPO. After listing
    of shares, public limited company can be easily
    traded at stock exchange.

8
  • Apart from regular agreement of Income Tax, there
    are heavy compliances that a public company need
    to fulfill. Among the registered business entity,
    public limited company have the maximum
    compliance as it involves public money. Minimum
    capital of a Public limited company is Rs. 5,
    00,000. This amount is supposed to deposit by the
    shareholder in a definite share percentage in the
    bank account of the public company. Further, this
    amount can be used by the company for its
    operations.

9
Public limited companies Act
  • An existing company must have less than the
    required minimum paid-up share capital. However,
    the paid-up capital is increased at least to the
    level of the prescribed sum of Rs.1 lakh or Rs.5
    lakhs. The company name can be affected from the
    register of companies maintained by the
    Registrar. Therefore, the company or its member
    or any creditor can approach the Court for its
    revival under s.560 (6) by producing evidence in
    support of enhancement of the paid-up share
    capital of the company.

10
Besides, It appears that the provision is
considered to made in sub-section (5) may not be
in public interest. It may cause hardship to the
creditors of the company struck off. These
conditions do not applicable to a section 25
company or a company not having any share
capital. Under Section 12 of the companies Act, a
public limited company registration can be with 7
or more persons associated for any lawful
purpose. Consequently, to form a public limited
company only minimum number of persons are
required. There is no limit on the maximum number
of its members.
11
Public limited company Vs Private Limited
Company
  • Moreover, A company is called Private limited
    company when all its shares lies in Private
    hands. It owned by a group of promoters. On the
    other hand, the public limited company shares are
    open to everyone. As a result, The company is not
    in the hands of promoters but the public owns it.
    In Private companies, the minimum number of
    shareholders can be two and the maximum it can be
    50. On the other hand, the minimum number of
    shareholders is seven for public limited
    companies and there is no limit to the maximum
    number of shareholders.

12
SHARES OF THE COMPANIES When talking of shares,
the shares features can be easily transferred in
a Public Limited Company whereas it is not
possible in a Private Limited company. Private
Ltd Company cannot offer shares to the public. On
the contrary, public companies can make a public
offers through advertisements. The shares of a
public companies are listed in the stock exchange
whereas it is not in the case of Private Limited
Company. This means that trading happens with
a public company in the stock exchange and
nothing of that sort happens with a private
company. In essence, A Private Limited company
is a partnership firm where as Public Limited
company is a complete corporate body. The Public
Limited companies come with strict rules and
requirements. On the other hand, no such rules or
requirements applicable for a private limited
company.
13
PROCEDURE OF REGISTRATION OF PUBLIC LIMITED
COMPANY
  • DSC of the directors
  • DIN of the directors
  • Preparation of INC- 29
  • (Including Name reservation, various
    declarations, MOA/AOA Registration)
  • Filing of INC -29
  • Wait for approval from ROC

14
DOCUMENTS REQUIRED FOR PUBLIC LIMITED COMPANIES
1. PAN card copy with Self-attestation
  2.    Latest passport size photo in jpg.  
  3.  Copy of Non Objection Certificate (NOC) from the owner of the property.
4.  If owned property, a copy of Sale Deed and Electricity bill is sufficient.
5. Voter Id copy or Passport copy or Aadhar card copy or Driving license copy with self-attestation.
15
6.  Copy of Electricity bill or Property Tax receipt or Water Tax receipt not older than two months.
7. Utility bill has to be provided of the particular country where the NRI or Foreign national resides and it should be notarized.
8.  Latest Bank account statement or Mobile /Telephone bill or Electricity Bill (not older than two months) no need for self-attestation. 
9. For the registered office proof of the company, if the property is rented/ leased, then copy or rental agreement or lease agreement.
10. In case of NRI or Foreign national, Passport copy has to be notarized at the Indian Embassy of the particular country.  
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