PUBLIC LIMITED COMPANY
HELPMYBIZ IS A PIONEER IN SIMPLIFYING COMPLEX PROCESSES FOR ITS CLIENTS AND ENSURING THE WORK GETS COMPLETED PROFESSIONALLY WITHIN 8 WORKING DAYS!
What is a public limited company?
A public limited company comes into existence by following and abiding by the various rules and regulations written down in the Companies Act, 2013. This is considered as an end goal by many startups, as becoming a successful public company reaffirms its brand image significantly. It also acts as an exit point for the previous investors.
If a person wants he/she can open a public limited company right from the beginning as well. In this section, we will be discussing on what are the requirements for incorporating a public limited company, the benefits, and the various compliances you need to be aware of when opening it.
How you can setup your public limited company in just 3 steps!
Connect with our experts so that we can understand your requirements. After understanding your needs, we help you pick a suitable and unique name.
Apply for Name approval, DIN and DSC.
Understand your requirements to draft an AoA and MoA. After these get approved we apply for TAN and PAN of the company.
Incorporating a public limited company can be quite troublesome with the numerous requirements and compliances it has to abide by when forming one. However it is a cup of tea for our team at HelpMyBiz! Contact us for the best advice and offers to get your company going today!
Under Companies Act, 2013. Section 2 (71)
A public company means a company which -
(a) is not a private company's
(b) has a minimum paid-up share capital of five lakh rupees or such higher paid-up capital, as may be prescribed:
Provided that a company which is a subsidiary of a company not being a private company, shall be deemed to be public company for the purposes of this Act even where such subsidiary company continues to be a private company in its articles;
BENEFITS
Let us understand the benefits we can avail of by incorporating a public limited company.
Separate Legal Entity
According to the Companies Act,2013 a public limited company is to carry an identity of its own which is separate from its Directors, shareholders, management, creditors, and debtors.
Limited Liability
The assets of the directors and shareholders is safe and are not to be touched in the case of insolvency of the company.
Fund Raising
A public company undergoes strict scrutiny before it is formed. Even after its formation, it needs to publish its annual reports publicly. This rigorous scrutiny gives confidence to investors and banks during fundraising.
Listing on Stock Market
A public company can choose to list on the stock market. This paves way for higher brand value and reputation compared to its peers.
Higher Liquidity for Shareholders
Since the company can list on the stock market, its shares become highly liquid as they can be traded between any 2 individuals with ease.
Increased Brand Recognition
A public company has a higher chance of getting recognized than a small private company.
PRE-PREPARATIONS REQUIRED
An Exclusive Name
The company needs to be registered under an exclusive name. A minimum of 2 names are sent to the Registrar of Companies during registration. You can verify whether your options do not sound similar to any current company by checking the mca portal.
Minimum of 3 Directors and 7 Shareholders
You need to have at least 7 people interested in investing in your public limited company. A director can also be considered a shareholder.
Registered Office
The company needs to mention a registered office from where it would initially conduct its business operations.
Paid-up Capital Contribution
The minimum paid-up capital required for a public limited company is 500,000/-
Business Object
The objective behind forming the company needs to be clear.
DOCUMENTS REQUIRED
Directors/Shareholders
01
Scanned Copy of Pan Card
02
Scanned Copy of Aadhar Card/ Voter Card
03
Address proof (Bank Statement, Mobile/Telephone Bill)
04
3 Passport size photos
05
Email ID and mobile number
Registered Office
01
Scanned NOC (No-Objection Certificate)
02
Utility Bills (Gas Bill/Electricity Bill)
03
Property Tax
04
Rent Agreement – If the property is rented.
REGISTRATION PROCESS
Day 1-2
Get in touch with our expert to get a better idea of the various technicalities involved in setting up a public limited company. Get expert suggestions on whether this business structure fulfills your requirements. After this, a Customer Relationship Manager will be assigned to help you with the process. We also request you to pay 50% of the fees upfront.
Day 3-4
Post receiving the fees we send your Digital Signature Certificate (DSC), Director Identification Number (DIN), and company name for approval.
Day 5-6
After DSC, DIN and Name are approved by the Registrar of Company a draft of Memorandum of Association (MoA) and Article of Association (AoA) is finalized and sent to you for your approval. We further request the remainder of the dues to be settled.
Day 7
Finally, the MoA and AoA are submitted to the Registrar of Company (ROC) and TAN and PAN are applied for at the same time.
Day 8
The registration process is complete and all the documents are sent to you immediately. We ensure you are satisfied with our service.
Our services are 100% online, so you can open your public limited company from the comfort of your home anytime! We strive to ensure that each step of the process is completed with perfection.
