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Public Limited Company Registration

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Public Company have inherent advantages over private company, including the ability to sell future equity stakes and increased access to the debt markets. A Public Limited Company is incorporated and governed by the Indian Companies Act 2013. Limited Company Registration in India is a purely separate legal entity distinct from its members and directors. It has the advantage of limited liability, greater stability and recognition. The basic requirement for a Public Limited Company in India is to have minimum three directors and seven shareholders. Public Companies can issue shares to the public through the stock exchanges or stock market. These can also raise additional capital by issuing debentures and bonds from the public on the basis of their financial performance. These are commonly known as Publicly Traded Companies or Publicly Held Companies. Shares of these Companies are freely transferable that provides more liquidity to its shareholders. – PowerPoint PPT presentation

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Title: Public Limited Company Registration


1
PUBLIC LIMITED COMPANY
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Public Limited Company Public Company have
inherent advantages over private company,
including the ability to sell future equity
stakes and increased access to the debt markets.
A Public Limited Company is incorporated and
governed by the Indian Companies Act
2013. Limited Company Registration in India is a
purely separate legal entity distinct from its
members and directors. It has the advantage of
limited liability, greater stability and
recognition. The basic requirement for a Public
Limited Company in India is to have minimum three
directors and seven shareholders.
3
  • Public Companies can issue shares to the public
    through the stock exchanges or stock market.
  • These can also raise additional capital by
    issuing debentures and bonds from the public on
    the basis of their financial performance.
  • These are commonly known as Publicly Traded
    Companies or Publicly Held Companies.
  • Shares of these Companies are freely transferable
    that provides more liquidity to its shareholders.

HOW IT WORKS
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  • DOCUMENT REQUIRED
  • Documents Required for Public Limited Company in
    India 
  • Self attested copy of Pan Card of all the
    proposed directors in case of Indian (minimum 3
    directors and minimum 7 Shareholders)
     Passport in case of foreign nationals.
  • Self attested copy of Address Proof (Passport/DL/A
    adhar Card/Voter Id) of all the proposed
    directors and Shareholders.
  • Self attested copy of Bank Account
    Statement/Electricity Bill/Mobile Bill of all the
    proposed directors.
  • Passport size Photographs of all the proposed
    directors and shareholders.
  • Duly signed DSC Form of the all directors of the
    proposed company.
  • Copy of current Electricity Bill/Water Bill/House
    Tax Etc for the premises proposed to be used as
    Registered Office of the Company.
  • If the property is rented, then rent agreement
    and NoC from Owner of Property.

5
  • WHAT YOU GET
  • What you get after Public Limited Company
    Registration
  • Unique Director Identification Number (DIN) for
    life time
  • Digital Signature Certificates (DSC)
  • Reservation the name for your Company.
  • Certificate of Incorporation
  • Rubber Stamp of the Company
  • PAN Card of the Company
  • Proper Incorporation File
  • Bank account opening documents
  • Draft Copies of MOA AOA.
  • GST Registration

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ADVANTAGE Advantage of Limited Company
Registration LIMITED LIABILITY It is an
important benefit of incorporation, once
shareholders have paid for their shares the
members of the company have no further liability
to contribute towards debt incurred by the
company. SEPARATE LEGAL ENTITY A company is a
legal entity and a juristic person established
under the Act. Therefore a company has legal
capacity to own property and incur debts. The
members (Shareholders/Directors) of a company
have no liability to the creditors of a company
for such debts. ACCESS TO FINANCE A Public
Company can easily obtain finance from banks and
other financial institutions as these types of
institutions are more willing to extend finance
to this type of company than to smaller forms of
business entities.
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BRAND AWARENESS  Since these types of companies
are often listed on stock exchanges, people will
be easily and quickly recognize the brand or name
of the company. MORE CAPITAL Since a public
company can sell its shares to the public thus
the potential capital that can be raised is
larger. A sole proprietorship or ordinary
business partnership cannot usually raise the
same amount of capital without additional
leverage. CAPACITY TO SUE AND BE SUED The
Company being legal person has full right like a
natural person to institute legal proceedings
against or to bring a suit in a court of law and
also can be sued in its own name. FREELY
TRANSFERABLE Shares of these types of companies
are freely transferable that provides more
liquidity to its shareholders.
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CONTINUITY OF MANAGEMENT The management of a
company might be separate from its ownership.
Management of the business can then continue in
spite of any changes in shareholders. Employees
can be promoted to senior management positions
without necessarily holding any shares in the
company. They can also be given shares as an
incentive. OWNING PROPERTY A company being a
legal person, can acquire, own, enjoy and
alienate property in its own name. No
shareholder/director can make any claim upon the
property of the company so long as the company is
a going concern ABILITY TO TAP FINANCIAL
MARKETS The biggest advantage to these types of
companies is their ability to tap the financial
markets by selling stock (equity) or bonds (debt)
to raise capital (cash) for expansion of business
activities. Requirement of Minimum capital Rs.
500000 is removed by amendment under Companies
Act, 2013.
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TIME DURATION
Activity Days
Taking Digital Signature of Directors 1-2 Day
Taking Directors Identification Number (DIN) 1 Day
Reservation of the name of the Company 2-7 Days
Preparation of other documents such as MOA,AOA, Forms etc 2 Days
Filling of documents with Authorities 1 Day
Getting Final Certificate of Incorporation 3-7 Days
Total Number of Days 10-20 Days
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FAQ'S 1).What is a Public Limited Company in
India? Answer A Public Limited Company is
incorporated and governed by the Indian Companies
Act 2013. Public Limited Company is a purely
separate legal entity distinct from its members
and directors. It has the advantage of limited
liability, greater stability and recognition. The
basic requirement for a Public Limited company in
India is to have minimum three directors and
seven shareholders. These are commonly known as
publicly traded companies or publicly held
companies. 2).What are the benefits or advantages
of a limited company registration? Answer A
Public Limited Company has the advantage of
limited liability, greater stability,
recognition, separate legal entity, easily obtain
finance from banks and other financial
institutions, people will be easily and quickly
recognize the brand or name, can sell its shares
to the public, full right like a natural person
to institute legal proceedings against or to
bring a suit in a court of law and also can be
sued in its own name, shares of companies are
freely transferable, the management of a company
might be separate from its ownership, can
acquire, own, enjoy and alienate property in its
own name and ability to tap the financial markets
by selling stock (equity) or bonds (debt) to
raise capital.
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3).What is the procedure to incorporate a public
company? Answer There are two ways of company
Incorporation in India. Through Normal Mode
(INC-1) Through Fast Approval Mode
(INC-29) 4).What is the time frame for Company
Incorporation as public company? Answer Through
Normal Mode- It usually takes 10-15 days after
receipt of all the necessary Documents, The
breakup of the Number of days is as
follows- Through Fast Approval- It usually takes
4-5 days after receipt of all the necessary
documents. 5).What are the Charges for
Incorporating a Public Limited Company? Answer Fe
es for the incorporation decide on company
capital, state and total number of
directors. 6).What is the minimum paid up capital
requirement for Incorporating a Public Limited
Company? Answer A public company must have a
minimum paid up capital of Rs.5,00,000 (Five
lakh).
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7).How many Persons are required to incorporate a
New Company Registration as Public
Company? Answer The Minimum numbers of 7 persons
(members) are required to incorporate a company
(It may be noted that there is no restriction of
maximum number of members in case of public
company) Legally minimum 3 directors are required
and 7 shareholders are required. These three
persons can act in both capacities as directors
and as shareholders. 8).Whether shares can be
transferred or not in case of public
company? Answer In case of public company there
is no restriction on the transferability of the
shares. Shares can be easily and quickly
transferred from one person to another. 9).How a
public company can go for subscription of its
shares? Answer A public company is free to
invite public for subscription of its shares by
issuing a prospectus (which means any document or
notice, circular, advertisement or other document
inviting offers from the public for subscription
or purchase of any securities of a body
corporate).  
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10. Can a public company further issue its shares
directly to general public? Answer No, firstly a
public company has to offer the further issue of
shares to its existing shareholders as right
shares. Further issue of shares can only be offer
to general public with the approval of existing
shareholders in the meeting of shareholders only.
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