Public Limited Company

A limited company grants limited liability to its owners and management. Being a public company allows a firm to sell shares to investors this is benificial in raising capital. A minimum of three Directors are required for establishing a Public Limited Company and it has more stringent regulatory requirements compared to a Private Limited Company.

Public Limited Companies are those types of companies where minimum number of members is seven and there is no cap on the maximum number of members. A public limited company has most of the characteristics of a private limited company. A public limited company has all the advantages of private limited company and the ability to have any number of members, ease in transfer of shareholding and more transparency. Identifying marks of a public limited company are name, number of members, shares, formation, management, directors and meetings, etc.,

Characterstics of public limited company

Directors-

  • As per the provisions of the Companies Act, 2013 for starting a public limited company, a minimum of 3 directors are required and there is no restriction on maximum directors.

    limited liability –

  • Limited liability plays a major role in the decision as the partners are limited to what is done for the shares. In simple words, a shareholder of a public limited company is not personally responsible for any loss or debt of the company for any amount. More than the amount invested by them; Unlike partnerships and sole proprietorships, where partners and business owners are jointly and separately liable for business debts.
  • Paid-up capital-

  • The minimum paid-up capital for a public limited company should be Rs 5 lakh or such higher amount as prescribed under the Act.




    Raising capital from the public –

  • The most obvious benefit of being a public limited company is the ability to raise share capital from the public for growth and diversification, especially where the company is listed on a recognized exchange.
  • Prospectus-

  • A prospectus is a complete declaration of the affairs of a company-issued by a public limited company to its public and there is a requirement under the Act for public limited companies to issue a prospectus. However, there are no such requirements for private limited companies. This is because private limited companies cannot invite the public to subscribe to their shares.
  • Documents required for incorporating a Public Limited Company

  • Proof of identity of all shareholders and directors
  • Proof of address of all directors and shareholders
  • PAN number of all shareholders and directors
  • Utility bill of proposed office i.e. registered office for company proposed
  • A NOC (No Objection Certificate) from the landlord where the company’s office will be located
  • Director Identification Number (DIN) of all directors
  • Digital Signature Certificate (DSC) of Directors
  • Memorandum Association (MOA)
  • Articles of Association (AOA)




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    Advantages of Public Limited Companies

    Better Access To Capital

    Shares are offered to the general public in a big way i.e. one can invest in a public limited company. Therefore, the capital of the company improves.

    More Attention

    Listing on the stock market ensures that mutual funds, hedge funds, and other traders focus on the company’s business. This may result in better business opportunities for a public limited company..

    Risk Exposure

    Since shares are largely sold to the public in the market, there is an increased risk of uncertainty in the market.

    Opportunities for Growth and Expansion

    Due to low risk, the funds raised through shares are the right opportunity for businesses to grow and expand by investing in new projects.

    Brand Awareness

    As a result of appearing on the stock market, people will be able to easily and quickly recognize the company’s brand or name. The more brand recognition and capital a company has, the more business it will have.


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    ₹31,111

    • 8 Class 2 Digital Signatures
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    ₹61,111

    • 8 Class 2 Digital Signatures
    • 3 Director Identification Numbers
    • 1 RUN Name Approval
    • Upto 10 Lakhs Authorized Capital
    • Incorporation Fee
    • Stamp Duty
    • Incorporation Certificate
    • Pan & Tan
    • 50+ Document Formats
    • Incorporate Kit
    • Hard-Copy share Certificate
    • GST Registration
    • Commencement of Business Certificate
    • Bookkeeping
    • Financial Statement Preparation
    • Annual Report
    • Director's Report
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    • MCA Annual Return Filing
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    ₹81,111

    • 8 Class 2 Digital Signatures
    • 3 Director Identification Numbers
    • 1 RUN Name Approval
    • Upto 10 Lakhs Authorized Capital
    • Incorporation Fee
    • Stamp Duty
    • Incorporation Certificate
    • Pan & Tan
    • 50+ Document Formats
    • Incorporate Kit
    • Hard-Copy share Certificate
    • GST Registration
    • Commencement of Business Certificate
    • Bookkeeping
    • Financial Statement Preparation
    • Annual Report
    • Director's Report
    • Board Resolution Preparation
    • MCA Annual Return Filing
    • Income Tax Return Filing
    • 1 Year Dedicated Compliance Manager Support
    • 1 Year GST Return Filing (GSTR-3B or GSTR-1)
    • Udyog Aadhar Registration
    • Trademark Registration
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