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PUBLIC COMPANY REGISTRATION

  • Public Limited Company in India can be either registered or unregistered on the share market. Its completely on to them whether they want to register or not. The listing of the company on the stock market they are ordered to showcase their financial year reports and illustrate the economic condition to enrich investor and stake holders belief and also gain public trust.
  • The lifespan of the shareholder in a publicly held company doesn’t impact how long it will continue to be a firm. These businesses can be used to raise capital but also have increased regulation.

Documents Required for Company:

The specific documents required for company registration can vary depending on the country and the type of company you want to register. However, here is a general list of documents and information that are often required for company registration in many countries:

1. Company Name: You will need to provide the proposed name of your company, and it should comply with the naming regulations of your country.

2. Business Structure: You will need to specify the type of business structure you’re registering, such as a sole proprietorship, partnership, limited liability company (LLC), corporation, etc.

3. Registered Address: The official address of your company’s registered office. This is where official correspondence will be sent.

4. Directors/Shareholders/Partners:  You will need to provide information about the company’s directors, shareholders, or partners, including their names, addresses, and contact details.

5. Articles of Association or Operating Agreement: Depending on the business structure, you may need to draft and submit articles of association (for corporations) or an operating agreement (for LLCs).

6. Memorandum of Association: This is typically required for corporations and contains the company’s objectives, rules, and regulations.

7. Share Capital: For corporations, you may need to specify the authorized share capital and details about the distribution of shares among shareholders.

8. Identification and Personal Information:  You will need to provide identification and personal information for the company’s officers, directors, and shareholders. This often includes copies of passports or national ID cards.

9. Proof of Address: Documents that verify the residential addresses of the company’s officers, directors, and shareholders. This can include utility bills, bank statements, or similar documents.

10. Business Plan:  Some jurisdictions may require a business plan outlining your company’s objectives, activities, and financial projections.

11. Statutory Declaration of Compliance: A declaration stating that all legal requirements for company registration have been met.

12.Tax Identification Number (TIN): In some cases, you may need to provide your company’s TIN or apply for one during the registration process.

13. Registration Fee:  You will need to pay the required registration fee, which varies by jurisdiction.

14. License or Permits: Depending on your business type, you may need specific licenses or permits, which should be included in your registration documents.

15. Other Documents: Additional documents may be required depending on the nature of your business, the industry you operate in, and local regulations. For example, if your business deals with specific products, you might need to provide additional certifications.

It’s essential to check with your local government or the relevant business registration authority in your country for the specific requirements and forms needed for company registration. Additionally, consider seeking legal or accounting advice to ensure you comply with all legal and tax requirements during the registration process.

15,000.00

Additional Details

Public Limited companies are owned and run by owners but still they have separate set of rules, obligations and regulations and legal rights. The owners of the public limited company are known as shareholders or stakeholders of the company. The ownership of the entity is split in to multiple units known as equity shares. The minimum of shareholders is ‘7’ which means there should be at least 7 different owners at any point of time. There is no maximum limit for the number of shareholders in Public Limited companies.

Rules prescribed for Public Limited Company as per Companies Act, 2013 are

  • Minimum 7 shareholders are required to form a public limited company.
  • Minimum of 3 directors is required to form a public limited company.
  • A minimum authorized share capital of Rs. 5 lakh is required.
  • Digital signature certificate (DSC) of one of the directors is needed while submitting self-attested copies of identity and address proof.
  • Directors of the proposed company will need a DIN.
  • The name of the company must be as per the provision of the Company Act and Rules.
  • Documents like the Memorandum of Association (MOA), Articles of Association (AOA) and duly filled Form DIR – 12 is needed.
  • Payment of the prescribed registration fees to the ROC is required.

Advantages

Public Limited Company have several advantages and other types of business entities. These advantages originate from Public Limited Company characteristics.

  1. Limited Liability:

Shareholders in a Public Limited Company have limited liability which means that their personal assets are not at risk in case the company defaults.

  1. Transferability of shares

Shares in public limited company can be easily bought and sold on a stock exchange, providing liquidity and flexibility to investors.

  1. Better Access to Government Schemes

Public Limited Companies have better access to government schemes, incentives and subsidies aimed at promoting economic growth and development.

  1. Professional Management

Public Limited Companies are usually managed by board of directors with expertise in various areas of business management.

  1. Greater Access to Capital

A Public Limited Company can raise capital by issuing shares to the public which can provide access to larger pool of investors and greater amount of funding.

Disadvantages

Disadvantages of Public Limited Companies can sometimes make it non appealing to the investors.  By getting informed by the drawbacks of the Public Limited Company you can stay informed to take right decision

  1. Regulatory Compliance

Public Limited Companies are subject to increased regulatory compliance requirements, including financial disclosure and shareholder communication. This becomes a costly affair

  1. Dilution of Ownership

By issuing shares to the public the ownership of the company can become diluted which can lead to loss of control.

  1. Limited Control over share price

Public Limited Companies have limited control over their share price, which can be influenced by the investors sentiments and market conditions.

  1. Costly to go public

The process of going public can be costly and time consuming requiring significant legal resources

  1. Pressure to Perform

Public Limited Company are under constant pressure to perform well and meet shareholders expectations, which can create stressful work environment.