Public Limited (F)

OVERVIEW

Public Limited

A public limited company is a separate legal entity that is registered under the companies act, 2013. Public limited can offers shares to the public and has limited liability. The shares of a public limited company that is already listed to be listed in the stock market can be acquired by anyone through IPO or through stock market trade. A public limited company can easily raise funds through a brokerage firm and the public. There is a higher cost of compliance as compared to the Private limited company as well as strict provision. This is because due to public money is involved.

BENEFIT

Following are the benefit of Public Limited

Large Capital: Easley of funding raising by Public Limited Company through investor IPO, brokerage firm
Growth Opportunities: the growth of public limited has no limited company, it can expand according to its business scale
Management: Public Limited Companies has a large number of investors. The organization is managed by the Board of Directors.
Limited Liability: Public company liabilities are limited to the extent of its share. If the organization is would up their investor and other stakeholders cannot utilize their fund towards the liabilities of the organization.

DISADVANTAGE

Potential for Loss of Control
Different Directions for the Business
Stock Market Vulnerability
Increased Legal Compliances

LEGAL REQUIREMENT

Minimum capital requirement for a public limited company is Rs. 5, 00,000
Minimum number of members or shareholders required is 7 (seven)
Must have minimum number of at least 3 directors .

All about Public limited Company

Public Limited

The Public limited company is preferred as it has a separate legal entity under the Companies Act, 2013. Such form of business has a wider Compliance capacity to own property and incur debts. This is because the member of the company, both shareholders and the directors, have no liability to the creditors of the company.

Shares offered by a public limited company are easily transferable to any other person, such that it requires filing and signing of share transfer form to transfer the shares.

Disadvantages of the public limited

Nepotism: Get ready to stand in long queues as a PUBLIC LIMITED COMPANY has to undergo too many legal formalities.
Controls and regulations: Public Limited Companies has large compliance to be followed.
Inflexibility: Thanks to its democracy and a high degree of external control that we get another con. Rapid decisions could not be taken in a Public Limited Company, thus imparting rigidity in decision making to the company.
Lack of secrecy: You will have to maintain transparency with the public in your decisions. Thus even business secrets are not secrets.
Distribution of profits: Public company has to distribute profit with shareholders.
Suitability: Public Limited Company are not suitable for all types of business activities. Small scale businesses that cater to the needs of a limited section of the society, need not be incorporated as Public Limited Company. It is the best entity for large-scale businesses only.
High costs: All Public Limited Company provide does not come without any cost. Starting up a Public Limited Company requires huge costs, time, and effort.

Basic

INR 14,999/-

One Time Fee

Company Registration
PAN & TAN
PF & ESI
GST Registration
MSME Registration
Bank A/c.

Service Provide Within 7 Days

Standard

INR 19,999/-

One Time Fee

Company Registration
PAN & TAN
PF & ESI
GST Registration
Shop & Establishment Registration
MSME Registration
Trade Mark Registration
Logo Design
Opening Bank A/c.

Service Provide Within 15 Days

Premium

INR 49,999/-

Yearly Fee

Yearly GST Basic Compliances
Annual Basic Compliance of Public limited Co.
Income Tax Return

Services Provided Before the Due Date

Custom Your Service Plan

Frequently Asked Questions

1. Q 1. What are the primary requirement for incorporation of public limited company?

For setting up a public limited company anywhere in India, Minimum of Seven Shareholders and Three Directors; the directors can also be shareholders. Minimum paid-up share capital worth INR 5 Lac, has been removed by the Companies (Amendment) Act, 2015.

Q 2. What are the Liabilities of Public Limited Company?

In public limited company involve public moneys it has to be make lot of compliance under companies act, income tax, FEMA SEBI, RBI etc.

Q 3. What are the Merits of Registering a company as Public Limited Company as compared to Private Limited Company?

A public limited company can raised is entitled to go public, issue its shares in the stock market, or accept public deposits. The following are the main and most significant exclusive features of a public limited company:

A public limited company can have a rather huge magnitude of capital, much more than that gathered by a private limited company.

It is legally authorized to trade on stock exchanges.

There is no limit to the maximum number of shareholders in a public limited company.

The shareholders of a public limited company have limited liabilities, limited roughly to the face value of the shares they own. Again, shareholders do not have to take part in the day-to-day management of the business of the company.

Shareholders of a public limited company are entitled to transfer their shares freely without needing consent of someone.