Planning to Start a Public Limited Company? Read This Guide

Posted by janvi sharma on July 2nd, 2021

A public limited company is a company governed under the provisions of Indian companies Act, 2013 and that can be formed with a minimum of seven members and three directors. As per the laws, there is no limit on the maximum number of members.

While public company registration in India, you are told to add LTD at the end of the name of the company. Shares of the public limited company are listed on the stock exchange where the public can trade openly. Companies with the requirement of huge investment usually opt for the public limited company registration.

In this article, we will learn about the things related to a public limited company and if you are planning to register your company then this public limited company guide will help you in getting the deep and accurate information.

Points You Should Know Before Public Limited Company Registration

These points will describe the benefits, restricts, and directions according to the law and you should check all these before public limited company registration in India.

·       Name

If you are planning to start a public limited company then it is compulsory to add “limited” after the company’s name as per the Companies Act, 2013.

·       Liability in a Public Limited Company

The liability of shareholders in a public limited company is limited to the number of shares they are holding in the company. None of the shareholders is responsible for the losses and debt of the company. But that not make them immune from every activity they perform or action they will take. They are personally responsible for the illegal actions taken in the company.

·       Directors in a Public Limited Company

As per the Companies Act, 2013 law, a minimum number of three directors are required to form a public limited company in India. You should have 7 members excluding directors in a public limited company. There are no restrictions on the maximum numbers of members and directors according to the public limited company registration guide.

·       Minimum Paid-up Capital

Before 2015, if someone plans to start a public limited company then they are required to have a minimum paid-up capital of five lakh or the amount prescribed in the companies act. But after the companies Amendment Act, 2015 has described that there is no minimum paid-up capital is required to start a public limited company. So, you can start your public limited company without any minimum paid-up capital restrictions.

·       Prospectus

Prospectus holds the complete statement of the affairs of one’s company. It is issued for the public by the public limited company and it is mandatory to issue prospectus as per the Act of public limited company. This makes the public limited companies different from the private limited companies because private companies cannot invite the public to trade in their shares.

Mandatory Requirements For Public Limited Company Registration in India

There are rules and regulations mentioned in the companies Act, 2013 for the public limited company formation that you have to follow. These are the things that you should keep in mind and with you while online public limited company registration.

  • In order to form a public limited company, three director’s requirement.
  • Excluding directors of the company, you must have a minimum number of seven shareholders in your company.
  • When you register a public limited company online in India, you need a digital signature certificate of the director that helps in signing files and documents online.
  • DIN (Director Identification Number) of the director of the company will be needed in the process of company registration in India.
  • Application for choosing and selecting the name of the company and getting its approval.
  • Application to state the main objects of the company that should define the main objective after the incorporation of the company.

These are the things you will need for the formation of a public limited company in India. Expertbells is the leading online service provider that offer public, one person, and private company registration in India. You will get the expert’s advice and help at every step while registering. Our expert will help you in preparing the documents and then submitting them to the ROC for verification.

You will get your certificate of incorporation after the successful submission and examination of the documents and forms. We always ensure that our clients operate their required legal operations efficiently at an affordable cost.

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janvi sharma

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janvi sharma
Joined: June 3rd, 2021
Articles Posted: 8

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