What is a public limited company?
Public limited company mostly deals with the large corporate houses including the factories and the industries. Unlike the private firms, they have certain compliances that must be adhered to for the proper functioning of the company.
What are the features of Public limited company?
- The shareholders hold liability over the share they have contributed for the company.
- The shares in the company can be bought and sold over the stock exchange.
- The shares of the deceased shareholder would be transferred to the next of kin.
- The financial documents of the company are carefully regulated and must be produced before the law as and when required.
- The companies have the facility of raising the capital when required.
Why should you register as a public limited company?
- Public limited company follow a structured succession of ownership in their business, thereby ensuring continued existence of the firm
- The company gets better funding options and have the liberty of gaining financial assistance whenever they want
- The company can have a property of its own under the company’s name
- They are considered as separate legal entities
Some things that you need to know
Funding options
Banking institutions and other funding organizations are glad to provide the funding for the public limited company. The companies are able to get the best funding options for running their business.
Starting the company
Unlike the other companies, starting a public limited company is a bit of a costly affair, as there are factors to be considered. This is one of the reasons why the large corporate bodies take up this, rather than the small businesses.
Members in the company
There is no limit to the maximum number of members in the company during their incorporation, though a minimum of seven members are required during registration of the company.
Documents required
- PAN card of the directors and the shareholders
- ID and Address proof of the directors and the shareholders
- Passport size photograph of the directors and the shareholders
- Signed DSC form
- Rental agreement document or the proof of ownership of the place chosen to run the business
- The latest utility bills for the place
- NOC from the landlord
Process of registration
- Digital Signature Certificate and Director Identification Number must be filed
- Approval for the name of the company must be obtained
- Required documents must be submitted and will be verified
- The company can be incorporated after verification of the documents
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