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A Public Limited Company under Company Act 2013 is a company that has limited liability and offers shares to the general public. Its stock can be acquired by anyone, either privately through (IPO) initial public offering or via trades on the stock market.
A Public Limited Company is strictly regulated and is required to publish its true financial health to its shareholders.
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Here are the major reasons why Public Limited is preferred:
Many times business need to borrow money and take high investment decisions. Public Ltd. Company is the best option for entrepreneurs with larger investment requirements. In case of normal Partnerships, Partners personal savings and property would be at risk incase business is not able to repay its loans or business goes into loss. In a Public limited company, only investment in shares of the business is lost, personal assets of the directors are safe.
Public limited company is popular and well known business structure. Corporate Customers, Vendors and Govt. Agencies prefer to deal with Public Limited Company instead of proprietorship or normal partnerships.
Public Limited company can list itself in various stock exchanges in India and raise capital from stock market. Limited company also enjoys wide options to raise funds through bank loans, general public and Institutional investors.
Investors love to invest in Public Limited companies as it is well structured and transparent business structure.
Most important it is very easy to exit from a Public limited company, only shares of the company need to be handed over to the purchaser along with the signed share transfer forms.
Public Company is the best choice for businesses involving heavy investment.
Listed below are the documents required for the public limited company registration process.
Incorporating Public Company in India involves many steps. Below are the steps to start Public Limited Company.
Our public limited company registration package includes:
You need to arrange very simple documents of director like photograph, Pan card and one address proof.
ROC is a Government office with whom companies get registered. Every State has one ROC office except Maharashtra and Tamilnadu where there are two ROC offices.
MOA means Memorandum of Association and AOA means Articles of Association. These are the byelaws or rules based on which important matters like main business of the company or meetings is decided. These are standard legal documents prepared by Company Secretaries during registration of the Company.
No, Filemydoc.com provides complete online Incorporation process. All legal documentation and visits are done by us.
No, Once the company is formed, it will be valid till it is officially closed down by the owners. No renewal or fees is required. However, every year company have to file very basic returns with ROC office.
Capital means investment made by shareholders into the company. Authorised capital is an amount up to which company can issue shares. This capital is mentioned during incorporation of the company based on which ROC registration fees and stamp duty is paid. Paid up capital is an actual investment which goes from shareholders into company bank account, against which share certificate is issue by the company.
No, After company is registered, it need to open a company bank account and then anytime within two months of incorporation, capital can be deposited into Company bank account.
This is not true, a Public limited company is one of the mode of doing business, which means it can be started from scratch. For that matter even after incorporating a Public limited there is no obligation that the company must have sales or turnover.
There is no automatic applicability. Provident Fund (PF), GST law applicability is same for all types of businesses like sole proprietorship, partnership firms and companies. These laws are applicable only after crossing certain threshold limits.
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