Public Limited
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.
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.
- Potential for Loss of Control
- Different Directions for the Business
- Stock Market Vulnerability
- Increased Legal Compliances
- Rs 500000 is the required minimum capital for a public limited company
- Minimum 7 [seven] person required number of members or shareholders
- Must have at least 3 directors are required
All about Public limited Company
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.
Disadvantages of the public limited
- Controls and regulations: it has large compliance to be followed.
- Inflexibility: Thanks to its democracy and a high level of external control that we get another con. Public limited companies could not take a rapid decision, thus imparting rigidity in decision-making to the company.
- Lack of secrecy: Business secrets are not secrets. You have to maintain transparency with the public in your decisions.
- Distribution of profits: Public limited company has to distribute its profit to shareholders.
- Suitability: Public Limited Company are not satisfactory for all types of business activities. Small scale businesses that serve the needs of a limited section of the society, need not be incorporated as Public Limited Company. A public limited company is the best entity for large-scale businesses only.
- High costs: IF Starting up a Public Limited Company requires huge costs, time, and effort. all public limited company provide does not come without any huge cost
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
Buy Now
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
Buy Now
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
Buy Now
Frequently Asked Questions
- For setting up a public limited company anywhere in India, a 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.
In public limited companies involve public money it has to make a lot of compliance under the companies act, income tax, FEMA SEBI, RBI, etc.
A public limited company can raise 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 the consent of someone.
Yes, NRI Can be the director of a public limited company as well as a shareholder of the company of India. Director must be qualified as per provision of companies act and such person has to obtain the DIN issued by MCA
Yes, There is no need to have nondomestic/commercial space for registering a company in India.
Yes, Employee of the company can be a director in the company subject to his employment agreement may have some restriction
A Listed company means a company whose stock is listed in recognized stock exchange but the following are not consider listed companies with effect from 1st April 2021
- Public companies which have not listed their stock (equity shares) on a recognized stock exchange but have listed their –(i) non-convertible debt (NCD) securities issued on a private placement basis as per rule and regulation of SEBI (Issue and Listing of Debt Securities) Regulations, 2008; or(ii) non-convertible redeemable preference shares issued on a private placement basis in terms of SEBI (Issue and Listing of Non-Convertible Redeemable Preference Shares) Regulations, 2013; or
- Similar to private companies which have listed their (NCD) non-convertible debt securities on a private placement basis on a recognized stock exchange in terms of SEBI (Issue and Listing of Debt Securities) Regulations, 2008;
- Public companies which have not listed their equity shares on a recognized stock exchange but whose equity shares are listed on a stock exchange in a jurisdiction as specified in sub-section (3) of section 23 of the Act. ]