Public Limited Company Registration
Do you have any idea about Public limited company registration? We Smart Auditor help you to incorporate your public company over Trichy, Salem and Erode. The public limited company offers its shares to the public and it is incorporated under Company Act 2013. It has limited liabilities and thus the stocks can be acquired by any of the public people via trade or IPO. The IPO in the sense initial public offering. It is the process of share transfer to the public via the new stock issuance. It allows the corporation to raise the capital funds from the municipal investors. The Public company required to publishing its actual financial health to its shareholders.
Procedures of Public Limited Company Registration
There are various principles for the formation of Public company under the companies Act, 2013. Below are some sets of procedures when you reach to start a company.
- Minimum numbers of shareholders are 7 for a Public company
- The minimum numbers of requirements in case of Directors are 3
- Minimum share capital is Rs.5 lakh
- The DSC of at least 1 director is needed when we submitting the attested copies of identity and address proof.
- All the directors should need the Director Identification Number
- To get the name of the company an application for the selection of name has to be submitted.
- The application for the main object clause has to make and the application contains objectives of the company after it gets incorporated.
- Payment for the ROC is required.
- After getting the approval from the ROC the company should fetch certificate of business agreement.
Features of Public Limited Company
The Public Limited Company has certain features and we are going to discuss about those features in a steadfast way.
The director commitment is mandatory according to start a new business. The companies Act, 2013 defines that there must be at least 3 directors mandatory to start a business. There are no limitations in the number of maximum count.
2) Limited Liability
In a public limited company each shareholders responsibilities are limited. Each shareholders are cannot able to take the responsibilities of the debt of the company which is greater than the actual investment from each partners. But they are capable of taking some debts behalf of company. This feature of the company does not provide any protection to the shareholders. Likewise, the shareholders are responsible to take consequences of their illegal actions.
3) Paid Up Capital
The paid capital requirement for a public limited company is Rs.5 lakh or any higher count as described in the Companies Act.
The prospectus or the pamphlet is issued by the Public company under certain rules and norms to its Publics and the prospectus creation involves lots of requirements. There are no such restrictions in case of Private limited company because they will not invite publics to subscribe their shares.
The Companies Act, 2013 states that all the Public company should add the word “Limited” to the suffix of company name.