Introduction of Public Limited Company
A Public Limited Company assures the limited liability to its Members and Owners. The major advantage of incorporating this type of entity is that a Public Limited Company is freely allowed to raise funds from public by following certain norms and regulations and results beneficial in raising capital. Though the regulatory requirements are much more strict than the Private Limited Company .
Here, it can be formed with seven Members and three Directors with no minimum capital requirements. It is beneficial to establish such Company when the investors are large in size and involves public at large. The shares of this type of entity are freely transferable in the market. It enjoys the basic features and advantages as granted by the Companies Act, 2013 such as Separate Legal Entity and Limited Liability.
Legal Window has team of experts providing you the best assistance, timely delivery and guaranteeing the highest customer satisfaction with respect to Company formation process. You may get in touch with our team on 072407-51000 or email email@example.com for Public Limited company registration and Compliance services
Advantages of Public Limited Company
Documents Required for Incorporation
Note:- In case of NRI or Foreign National documents of Directors and Subscribers must be notarized or apostilled .
Process of Incorporation of Public Limited Company
1. Complete the Application Form
You are requested to first fill the simple questionnaire provided by our expert team.
2. Document Processing
At the second step we will be requiring the documents in accordance with the questionnaire filled by you so that we can arrange them as per the requirement and for processing.
3. Application for DSC
First of all DSC (Digital Signature Certificate consisting of the E-signatures) is required to be prepared. This step can be ignored if prepared already. It will approximately take 1-2 days.
4. Name Availability
The next step is to check the name availability. The name should be unique in nature and should not be similar to name of any other entity registered. It may take at least 1-2 days.
5. E-filing for incorporation of a Company
Once the name is approved, an online application is required to be filed through SPICE+ along with the requisite documents as obtained from the client with ROC. The MOA as well as AOA shall be filed online. This process again takes approximately 2-3 days.
6. Get Certificate of Incorporation
Once the Company gets incorporated we will share all the docs like Incorporation Certificate, MOA , AOA and Digital Signatures.
More Insights on Public Limited Company Registration
How to Select the Name of Company
- You can check Company name availability thereby logging into MCA where you need to keep in mind two or three available options along with the activity type. Our team will assist you in the selection of name of company.
- Also, along with checking the name availability we also need to check the trademark if already registered under the proposed name which makes the online application for registration more powerful. If you want to have a trademark of your word or logo you can get the same through Legal Window by clicking on the below mentioned link Trademark Registration
Other Key Points
If the proposed Director is already having the DIN then you can also check whether DIR-3 KYC iscompleted. You can verify the same with the help of our experts. If the same is not done yet, it can be done with help of Legal Window.
- The Public limited company is required to manage all the compliances after incorporation of the company like appointment of statutory auditor, filing commencement of business, Income Tax Filing, Annual Returns with ROC and other compliances as required by the law. Legal Window has a team of experts who keeps an eye on the due dates of your compliances and reminds you through mails.
Income Tax Rate for Public Limited Companies for F.Y. 2020-2021
Domestic Company Turnover > Rs. 400 Cr
|Net Taxable Income||Income Tax Rate||Surcharge||Health & Education Cess|
|Upto 1 crore||30%||Nil||4%|
|Above 1 crore but upto 10 crore||30,00,000+ 30%||7%||4%|
|Above 10 crore||3,00,00,000+ 30%||12%||4%|
Domestic Company Turnover < Rs. 400 Cr
|Net Taxable Income||Income Tax Rate||Surcharge||Health & Education Cess|
|Upto 1 crore||25%||Nil||4%|
|Above 1 crore but upto 10 crore||25,00,000+ 25%||7%||4%|
|Above 10 crore||2,50,00,000+ 25%||12%||4%|
Choose the right entity type after comparing different business structures
|Basis||Private Limited Company||Public Limited Company||One Person Company||Limited Liability Partnership||Partnership Firm||Proprietorship Firm|
|Registration Requirement||Companies Act, 2013||Companies Act, 2013||Companies Act, 2013||LLP Act, 2008||Registered/Unregistered||No Specific Criteria|
|Number of members||2 – 200||7-∞||Only 1||Unlimited||2 -50 partners||Only 1|
|Number of Director||2-15||3-15||Only 1||2 designated partners||NA||NA|
|Naming of Entity||Unique||Unique||Unique||Unique||No Guidelines||No Guidelines|
|Liability of Entities||Limited||Limited||Limited||Limited||Unlimited||Unlimited|
|Foreign Investment||Eligible||Eligible||Not Eligible||Eligible||Not Allowed||Not Allowed|
|Statutory Audit||Mandatory||Mandatory||Mandatory||Mandatory||Not Required||Not Required|
|Compliance Level||Annual Compliance||Annual Compliance||Annual Compliance||Annual Compliance||Less Compliance||Zero Compliance|
|Tax Rate||22%||22%||22%||30%||30%||Individual Tax Rate|
|Know More||Get Started||Know More||Know More||Know More||Know More|
FAQs on Public Limited Company
Minimum three Directors and Seven Members agreeing to subscribe the shares of the Company.
Yes, the above person can become a Director post obtaining Director Identification Number. However one Director should be Indian Resident.
A Member is required to deposit the money in the bank account at the earliest and file the form for commencement within 180 days from the date of incorporation of the Company.
Once, the company gets registered, it should comply with the following within the prescribed time frame.
- Opening of the company’s current account and depositing the subscription money
- Appointment of a Statutory Auditor within 30 days of incorporation
- Issue and allotment of shares and provide Share Certificate
You can register a Public Company at a commercial or residential place by providing the documents as specified. There is no restriction by the department.
You can only transfer the shares by complying with the regulations of Companies Act, 2013 and it is necessary for the public company to get the shares dematerialised with NSDL/CDSL before transferring the shares or before introducing the capital in the company.
Yes, a Director can also become a shareholder and vice versa as a Company is a Separate Legal Entity.
There is absolutely no minimum capital required but generally people prefer and are advised to incorporate the same with a minimum capital of Rs. 5 Lacs.
No, the money cannot be withdrawn but can be used by the Company for official purpose like for paying salary to staff and employees, other administrative expenses etc.
Yes, for Indian nationals becoming a Director in a Company it is mandatory to have a PAN Card and Passport in case of Foreign Nationals.
Yes, a Public Company can carry multiple related business activities if it is mentioned in the company’s objects and been approved by the registrar. You can not operate entirely different activities like construction and Food Company under one name.
During every financial year, the company must hold at least 4 board meetings (one in each quarter) and one Annual General Meeting (AGM) and EOGM if required. Further, the company has to get the financial statements audited by an independent auditor. Subsequently, it shall file forms like AOC – 4 and MGT – 7 , MGT-14 and other forms as applicable as part of Annual Compliance within given time.