What is Public Limited Company
Your decision to begin your entrepreneurial journey starts with the decision of selecting the right business structure to follow with. Kaushikii Welcomes you to the world of business. We respect your idea and want to be a partner in your journey. A partner who can advise you to select the right options for your business structure and provide legal and Tech support
Let’s take you to one step more closure to know Public Limited Company incorporation process and its implication on the business structure.
• A public limited company is the highest corporate structure to start with. Public limited business structure is great for the long run but has more stringent regulatory requirements.
• Apart from all the advantages of a private limited company, Public limited company has the ability to have any number of members, ease in transfer of shareholding and more transparency.
• A public company is a company that has sold all or a portion of itself to the public through an initial public offering (IPO), meaning shareholders have a claim to part of the company’s asset and profits.
Decision
• If you plan to proceed for an IPO now or at a later stage
• Plan to get high financial exposure to source capital from public as Equity or debenture or deposit
Benefits & Liabilities of Public Limited Company
Benefits of a Public Limited Company
• Shields personal assets from business liability, limits liabilities of Directors.
• The Public Limited Company continues to exist even after the death of the Shareholder.
• Unlimited financial exposure to source capital from public as Equity or debenture or deposit
• High brand image, more transparent & credible compared to other business structures.
• Easily transferability of ownership by just transferring shares.
• Public Limited Company being an identity, can own, acquire and alienate, property in its name. Property owned could be anything like machinery, building, patents, intangible assets, land, residential property, factory etc.
• With compliance, a public limited company can list its shares on the stock exchange.
Liabilities of Public Limited Company
• A Public limited company must hold a board meeting annually
• File annual returns with MCA (Ministry of Corporate Affairs)
• Annual account audit by a CA is mandatory
• Minimum 3 directors, Minimum 7 shareholders
• Minimum 5 lakhs of share capital
Tax Liabilities of Public Limited Company
• Public limited company is required to file annual return with the Income Tax Department
• Annual account audit by a CA is mandatory
Documents Required for Public Limited Company Registration
From Directors and Shareholders
• Voter’s ID/Aadhar Card/Passport/Driver’s License
• Latest Bank Statement/Telephone or Mobile Bill
• Voter’s ID/Passport/Driver’s License
• Passport-sized photograph of all directors and shareholder
• Scan copy of Signature (signature should same as on PAN Card)
For Proposed Registered Address (Residential/Commercial)
• Any Utility bills
• Scan copy of Rent agreement with NOC from owner
Capital
• It’s easy for Public limited company to get funding or borrow capital from banks/Financial Institutes, IPO etc.