With a more stringent registeration policies compared to private limited companies, public limited company requires a minimum of 3 directors for establishment. It grants limited liability to its owner and management. It also allows a firm to sell shares to its investors for raising funds.
It has as low as 7 members in a company but has no limit on the maximum figure. It has similar characteristics and advantages of Private Limited company and the ability to have any number of members, ease in transfer of shareholding and more transparency. Identifying marks of a public limited company are name, number of members, shares, formation, management, directors and meetings, etc.,
Benefits
Distinct Establishment
Being a separate legal entity in the eyes of law, company has wide legal capacity and can own property and incur debts. The members (Shareholders/Directors) of a company have no liability to the creditors of a company for such debts.
Property Possession
Being a separate entity, the company can acquire, own, enjoy and alienate, property in its own name. No shareholder can make any claim upon the property of the company so long as the company is a going concern.
Uninterrupted Existence & Easy Transferarbility
A Public Limited Company is everlasting firm till it is legally dissolved. It is not affected by the death or departure of any of the partners. Change of ownership does not affect the working of a public limited company. The ownership of Public Limited Company is easily transferrable to another person inducting them as a partner.
Borrowing Capacity
A company enjoys better avenues for borrowing of funds. It can issue debentures, secured as well as unsecured and can also accept deposits from the public, etc. Even banking and financial institutions prefer to render large financial assistance to a company rather than partnership firms or proprietary concerns.
Documents Required
Identity Proof
PAN Card of shareholders and Directors. Foreign nationals must provide a notorised copy of valid passport.
Address Proof
Passport, Driver’s License, Aadhar and Latest Telephone Bill /Electricity Bill/ Bank Account Statement of Shareholders and Directors. The two required documents must not be 2 months old.
Photograph
Latest Passport size photograph of Shareholders and Directors.
Business Address Proof
Rental Agreement or Sale Deed and Latest Electricity Bill/ Telephone Bill, Property Tax Receipts of the registered office address.
NOC from owner
No Objection Certificate to be obtained from the owner(s) of registered office
Signed Incorporation Documents
Signed Digital Signature Application Documents in Hard Copy. Other Incorporation Documents signed and uploaded as soft copy.
Note
In case of NRI or Foreign National, documents of the partner must be notarized or apostilled.