To start off, most companies go public when they think they have the potential to grow bigger. Moreover, a Public Limited company has all the perks of a private company. Adding on, it has a few more perks like trading unlimited stocks and more transparency. Furthermore, here’s an easy guide to the incorporation of Public company in India.
What Is A Public Limited Company?
In simple words, a Public Limited company is a company whose shares are traded in the stock market. The company must have a minimum of 3 Directors and 7 shareholders to apply for a Public Limited company registration. Furthermore, there can only be a maximum of 50 Directors. High transparency and unlimited memberships are highlights of a Public Limited company.
Documents Required For Incorporation Of Public Limited Company
Here’s a list of documents you’ll need for the incorporation of Public Limited company:
- Firstly, A copy of the PAN Card(s) of Director(s)
- Also, passport size photograph of the Director(s)
- A copy of the Aadhaar Card/ Voter identity card of the Director(s)
- Furthermore, a copy of the Rent agreement if you’ve rented a property
- MoA and AoA
- Electricity/ Water bills of the office of the company
- A copy of Property papers if you own any property
- Lastly, a NOC by the Landlord
Public Limited Company Registration Process
- Firstly you’ll have to select the type of company you want to register. In this case, a Public Limited company.
- Secondly, you’ll have to apply for a name verification for your company. Make sure the name of your company doesn’t trigger any copyrights or trademarks.
- Furthermore, you’ll have to apply for and obtain DSC and DIN for all the directors.
- You’ll also need a minimum share capital of INR 5 lakh
- Lastly, you’ll have to mention all the documents mentioned before.
- The Public Limited company registration process will be complete once you’ve done all the above
Pros Of Incorporation Of Public Limited Company
Incorporation of Public Limited company has its own benefits. Here’s a list of the most prominent ones to help you:
- It brings your company to the stock exchange. Furthermore, the shares of your company are eligible for quick share transfer.
- Subsequently, this increases the borrowing capacity of your company. Its simple economics that going Public will boost the value of your company thus resulting in more borrowing power.
- Furthermore, Directors and Founders of the company will have limited liability. When the company goes Public it becomes a separate entity thus if it goes into loses the people in power will have limited liability.
- The company will become a separate legal entity.
Fees For The Incorporation
Registering a company is an expensive deal in India. While the government fees are dirt cheap, what really costs a fortune is hiring an expert. But, don’t worry. Taxolawgy is the best place to find an expert to suit your needs. You’re just a search away.
Once your application is accepted you’ll receive a Certificate of Incorporation. The certificate will have your company’s PAN on it. Moreover, with this, your company will be officially Public.
Be it incorporation of Public company or filing a GST Return, we’re here to make things easy for you.