What is a Public Limited Company?

The Public limited company in India is a voluntary association of members which has a separate legal existence and the liability of whose members is limited. A Public Limited Company can either be an unlisted Company or listed Company on the Stock Exchange. Public Limited company also enjoys wide options to raise funds through bank loans, the general public, and Institutional investors.

A public limited company has many advantages over Private Limited Company and the ability to have any number of members, ease in transfer of shareholding and more transparency makes it popular amongst foreign investors. If you are planning to raise funds from the public through Initial Public Offer (IPO) then Start your business by incorporating Public Limited Company.

A public limited company is usually established to generate capital from external sources, i.e. the general public for starting a business, business expansion, technological advancement, global expansion, etc.

But a Public Limited Company is suitable to the large organizations which have a comprehensive perspective and higher growth possibilities, rather than a small shop located next door.

Features that make a Public Limited Company Different from Private Limited Company:

• Shares offered by a public Ltd. Co. are easily transferable to any other person, such that it merely requires filing and signing of share transfer form to transfer the shares.
• A Public Ltd. Co. is the highest corporate structure to start with.
• In Public Limited Company shareholders have a claim to part of the company’s assets and profits.
• Public Limited Company can have any number of members.
• Shares are easily transferable in Public Limited Company.

Why you should form a Public Limited Company?

1. Separate Legal Entity

Public Limited Company enjoys the benefit of Separate Legal Identity in the eyes of law which clearly states that assets and liabilities of the business are not the assets and liabilities of the Directors.

2. Builds Credibility

All the information relating to the company are made available in a public database. This feature makes it easy to authenticate the existence of the business that ultimately helps in improving business credibility.

3. Easy Transfer

Shares of the public limited company are purchased and sold in a stock exchange market. They are freely transferable between the members and people trading in the stock exchange.

4. Perpetual succession

The company keeps on existing in the eyes of law even in the case of death, insolvency, the bankruptcy of any of its members and the succession would be valid.

5. Access to Finance

A Public Ltd. Co. can easily obtain funding from Banks and other financial institutions since they are more willing to extend financing to this type of company.

 6. Scope for expansion

There is unlimited scope for growth and expansion of business in Public Limited Company and New shares can be used to raise additional capital in Public Limited Company.

Documents Required for Public Limited Company

• Photograph of all the Directors;
• PAN Card of all the Directors;
• ID Proof of all the Directors (Driving License/Passport/Voter ID);
• Electricity Bill or any other utility bill for the address proof of the Registered Office.

How to Register a Company Online - the Registration Process

Company registration in India benefits startups since it offers them an advantage over those who have not registered. The process of registering your company is complex and involves many compliances. However, you needn’t worry as long as you have Barrister Babu as our professionals can help you with every step of the private limited company registration process.

• Step 1: Obtain DSC.

• Step 2: Apply for the DIN.

• Step 3: Application for the name availability.

• Step 4: Submission of MoA and AoA to register a Public Limited Company.

• Step 5: Apply for the PAN and TAN of the Company.

• Step 6: RoC issues a Certificate of Incorporation with a PAN and TAN.