Public Limited Company Registration, Public Limited Company

Public Limited Company Registration
Starting at INR 17,999 onwards

What is a Public Limited Company Registration?

Public Limited Company Registration is one of the most popular forms of company registration in India.  A Public limited company registration is governed by the Ministry of Corporate Affairs under Companies Act, 2013 and the Companies Incorporation Rules, 2014. A Public Limited Registration needs a minimum of seven shareholders and two directors. Individuals and Corporate from places other than India or NRIs are allowed to be Directors and/or Shareholders of the Company with Foreign Direct Investment. This makes Public Limited Company Registration one of the most suitable kind of Company Registration for foreign promoters as well. Apart from the limited liability protection to its shareholders, features like ability to raise equity funds, separate legal entity status and perpetual existence make it the most recommended type of business entity for businesses of all sizes. A Public Limited Company also has a better capacity of raising capital than that of Private Limited CompanyOne Person Company (OPC) or Limited Liability Partnership (LLP).  Apart from Banks and financing from Financial Institutions Public Limited companies can raise money from public making it the best organisational structure for larger corporates.

Why Public Limited Company Registration?

Borrowing Capacity

A Public Limited Company can avail better scope for borrowing funds. Banking institutions and Venture Capital Firms prefer to render financial assistance to a  Public Limited company rather than partnership firms, proprietary concerns or any other form of unregistered business. Being public limited company, it is allowed to raise funds from public and also have better borrowing avenues.

Perpetual Succession

A Public Limited Company exercise “Perpetual Succession”; which means that the company’s life is not determined by the longevity of its members, shareholders, promoters, directors, employees or anyone else. If a shareholder dies, or hypothetically, all the shareholders of Public Limited Company dies or resigns , only their shares in the company will be transferred to new people.

Separate Legal Entity

A Public Limited Company Registration is a separate legal entity as distinct from its members, and is separate at law from its shareholders,directors, promoters etc. A Public Limited Company has the capacity to own properties, incur debts and exercise a number of legal rights.

Limited Liability

Limited Liability protects the personal assets of founders, partners, directors or shareholders of the company in case of debt or insolvency. The liability of the members in respect of the company’s debts is limited only till their investment of capital in the company and not their personal assets.

Transferability of Shares

Shares of a Public Limited Company are easily transferable by a shareholder to any other person. The Transfer process involves filing and signing a share transfer form and handing over the buyer of the shares along with share certificate.