Public Limited Company Registration Services in Purnea

A public limited company (PLC) is the legal designation of a limited liability company which has offered shares for general public and has limited liability. A public limited company ‘s stock is offered to the general public and can be earned by anyone, either secretly, during an first public offering or through trades on the stock market.

The appellation PLC is more commonly used in the United Kingdom and some Commonwealth countries, as opposed to “Inc” or “Ltd,” which are the ideal in the United States and not here. The mandatory use of the PLC abbreviation after the name of the company serves to instantly inform investors, or anyone dealing with the company, that the company is public and perhaps fairly huge.

Increased Liability: Taking a private company public growths the potential liability of the company and its officers and directors for impurity. By law, a public company has a responsibility to its shareholders to maximize shareholder profits and disclose information about business operations. The company and its management can be sued for self-dealing, making material distortions to shareholders and hiding information that incorporate securities laws require to be disclosed.

Enhanced Reporting Requirements: A private company can keep its internal business information private. A public company, but, must make extensive quarterly and annual reports about business operations, financial position, compensation of directors and officers and other internal matters. It loses most privacy rights as a consequence of allowing the public to invest in its stock.

Prospectus: For a public company, issuing prospectus is mandatory  because the public is invited to subscribe for the shares of the company.

Expensive: Going public is an expensive and time consuming process. A public company must put its affairs in order and prepare reports and disclosures that match with SEBI regulations concerning initial public offerings. The owner has to hire specialists like accountants and underwriters to take the company through the process.

Equity Dilution: Any company going public is selling a part of the company’s ownership to unknown. Each bit of ownership that the owner sells comes out of their current equity position. It is not always possible to raise the amount of money that you may need to operate a public corporation from shares, therefore company owners should hold at least 51 percent of the ownership in their control.

Loss of Management Control: Once a private company goes public, managing the business becomes more complicated. The owner of the company can no longer make decisions independently. Even as a majority shareholder, they are accountable to minority shareholders about how the company is managed. Also, company owners  will no longer have total control over the composition of the board of directors since SEBI regulations place restrictions on board composition to ensure the independence of the board from insider impact.

Increased Regulatory Oversight: Going public brings a private company under the supervision of the SEBI and other regulatory authorities that regulate public companies, as well as the stock exchange that has agreed to list the company’s stock. This increase in regulatory oversight significantly influences management of the business.

There are various prescribed rules and regulations have been stated for public limited company formation and incorporation in India under the New Companies Act, 2013. It is mandatory for one to follow each and every step while applying for the certification of the same company. Here below Avyud Consultancy bring you with detail steps to register a public limited company in India.

• Minimum share capital of worth 5 lacs require for the same.
• Require DSC – digital signature certificate for any one of the directors that can be apply while submitting the address proof and identity proof with self attested of the same director.
• Minimum 7 shareholders and 3 directors need to form a public ltd. company.
• Get DIN number – Director Identification Number that can be get while submitting directors personal details with attested copy to the concern DIN authority.
• An application is to be made for pre-name. Where there is need to list at least 6 names in priority wise.
• Finally, after getting approval from all these prescribed steps; get apply for the certificate of commencement of Business and company incorporation and formation.
• An application for name availability is to be made comprised of 6 names and main objective clause; what a company pursue after incorporation.
• Representing the application to Registrar of Company along with the necessary documents like Memorandum and Articles of Association, duly filled Form DIR – 12, Form INC – 22, and Form INC – 7.
• In final process, get follow with ROC while paying registration fees; and make changes if required to MOA / AOA in other legal documents of the proposed company.

The amendments and reinforcements in respect of company acts and laws have been taken place at regular interval of time by the concern authority; thus, it is quite beneficial to have deep knowledge about the New Companies Act 2013 where you can contact us for the same.

Public Limited Companies are companies whose shares are traded in the stock market or issue fixed deposits. For Public Limited Company Registration, the company must have a minimum of 3 Directors, 7 Shareholders, and a Maximum of 50 Directors and need Rs 5 Lakhs of Paid-up Capital. A Public limited company has all the advantages of a Private Limited Company and the ability to have any number of members, comfort in the transfer of shareholding, and more transparency.

• More preference is given to public limited company in giving loan.
• By following compliance public limited company can list its shares on stock exchange.
• Shareholders can transfer their Shares with great ease.
• Limits the liabilities of its partners.

DSC abbreviated as Digital Signature Certificate, which is issued by the certifying authority for signing electronic documents. DIN is the Director Identification Number which is allotted along with the certificate of incorporation through SPICe+ form.