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Public Limited Company Registration

    Public Limited Company Registration

    A public limited company registered under section 2 (20) of The Companies Act, 2013 is a voluntary association of incorporated members and has a separate legal existence. It’s stock can be acquired by anyone, either privately through (IPO) initial public offering or via trades on the stock market. Public Limited Company collects its capital from the sale of its shares and the amount so collected is called share capital. Those who buy the shares of the company are called the members or shareholders of the company. A company to be registered as Public limited must have at least seven members however there is no limitation for the maximum members. Public Limited registration is done through Heyadvisor.

    Advantages of a Public limited company
    • Headed by board of directors: Public limited companies are led by board of directors and their composition is set out in the company’s articles of association. Board of directors’ act as the representatives of the shareholders in the management of the company.
    • Limited liability: The liability of a member of the company is limited to the face value of the shares he owns. The responsibility of the shareholder for the company’s losses is limited to its share contribution only.
    • Existence:Public limited company is not affected by the death of one of its shareholders, however, their shares are transferred to the next of kin and the company continues to run as usual, while in the case of a director’s death an election is held to appoint a new director.
    • Transferrable Share:In Public Limited Company shareholders can transfer their shares easily.
    • Multiple Source of Funding: Public limited companies can raise funding from various sources. Such type of companies can raise funds from individuals as well as from financial institutions. The funds can be raised through equity shareholding, debentures or preference shareholding.
    Disadvantages of a Public Limited Company
    • Restrictions and regulations: Public limited companies are regulated by significant numbers of Statutes, laws and regulations. And hence less autonomy rests in the hands of directors.
    • Lack of confidentiality:None of the operations can be carried out confidentially and it is mandated to involve the general public in the company’s decisions.
    • High costs: A public limited company requires huge cost and effort. You can expect high profits only when the investment is also high.

    Public Limited Company Registration Process

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      Documents Required for Public Limited Company Registration in India

      FAQs for Public Limited Company Registration

      The contrast between recorded organization and public organization is exceptionally basic. A public organization when goes to the public to raise capital, it needed to get enlisted with stock trading and whenever it is enrolled, at that point it is otherwise called recorded organization.

      Essentially, public restricted organization is framed just when somebody is arranging large like setting up assembling plant, opening IT foundation and so forth For the most part, individuals lean toward private Limited Company and public restricted organization is least liked. Nonetheless, in the event that you are not kidding and arranging large, the public restricted organization is picked.
      A portion of the case of a Public Limited organization are Reliance Communications Limited, TATA Steel Limited and so on

      Any organization who needs to raise assets through overall population, first need to get them recorded on any perceived stock trade. Any organization which is being perceived or recorded on any stock trade, is known as recorded Company. Like Infosys, Tata, ICICI Bank and so on.

      Public limited companies are the only class of company which is allowed to raise funds from the general public. The process of listing a company and raising the funds from public by making the offer is known as an Initial Public Offer (IPO). An IPO is the process through which shares are offered by the companies to raise funds.

      There is no base capital prerequisite for public restricted organization fuse in India. Prior, it was 5 lakh, any way to give simplicity of working together in India, the necessity of least capital for Public organization is removed.