Public Limited Company?

What is Public Limited Company ?

A company whose securities are traded on a stock exchange and can be bought and sold by anyone. Public companies are strictly regulated, and are required by law to publish their complete and true financial position so that investors can determine the true worth of its stock (shares). These public limited company can be listed or unlisted on stock exchange. A limited company grants limited liability to its owners and management. Being a public company allows a firm to sell shares to investors this is beneficial in raising capital. Public limited companies securities are traded on stock exchange and can be bought and sold by anyone. Public limited companies are strictly regulated, and are required by law to publish their complete and true financial position so that the investors can determine the true worth of its shares.

Advantages of Public limited companies: OR Reasons for choosing a public limited company:

• Continuity of existence
• Larger amount of capital
• Able to raise capital for expansion by selling additional shares
• Limited liability for shareholders
• Raising the capital through Public Issue
• Easy Transferability of shares
• Separate legal entity
• Easy to acquire other companies
• Pursue or gain new projects, new products or new markets
• Grow capital expenditure to support and enhance the business
• Acquire funds for research and development

Key Features to Regstered a Public Limited Company :

1. Director : A minimum of three Directors are required, One of the directors must be resident of India i.e. in India not less than 182 in the previous calendar year.
2. Member : Minimum number of member as shareholder is seven.
3. Registered office address.
4. Capital : The minimum share capital of Rs. 5 lakhs is required.

Eligibilty to be a director in a Public Company

• Director should have minimum age of 18 years.
• A foreigner or a non-resident Indian can become an executive or a non executive/independent director of Indian companies whether public.

REQUIRED DOCUMENTS :

• Utility Bill of the proposed office i.e. proposed registered office for the company
• A NOC (No Objection Certificate) from the landlord where the office of the company will be situated, If rented
• Bank account statements
• Proof of address of all the directors and the shareholders
• Identity proof of all the shareholders and directors
• Passport sized photo ID
• Email id & contact no