Registration of a Public Limited Company

Incorporating a Public Limited Company is a suitable option for large scale businesses that require huge capital. There should be a minimum of seven members with no limit on maximum number of members/shareholders for starting a Public Limited Company.

Usually, Public Limited Companies get listed with stock exchanges to raise capital from the general public. This is why Public Limited Companies have to comply with multiple regulations of the government and starting a public limited company becomes a cumbersome process.

Documents Required for Registration

• Passport sized photographs of all the Directors
• Copies of the Identity documents of all the Directors- Aadhar Card, Voter Card, PAN card
• DSC (Digital Signature Certificate) of all the Directors
• DIN (Director Identification Number) of all the Directors
• In case the office is in a rented property – the rent agreement
• In case the office is an owned place – the property ownership documents
• The water bill and the electricity bill of the business place
• No Objection Certificate by the Landlord
• Memorandum of Association (MoA)
• Articles of Association (AoA)

Benefits of Public Limited Company Registration

Here are the benefits provided to the company with Public Limited company registration

• Limited Liabilities For The Shareholders Of The Company

  Shareholders of the public company enjoy the benefits of limited liabilities under which their assets are safe and cannot be used to clear the debts and losses of the company. Despite of it, the shareholders are responsible for their own legal offenses. All the members, directors and shareholders enjoy this right and their assets cannot be seized by any bank, creditors or government bodies.

• Perpetual Succession

  A public limited company is considered as a corporate body that has perpetual succession. Means in case of death, retirement, insanity, and insolvency of one or more members/ shareholder/ directors, the company still continue its existence.

• Improved Capital Of The Company

  In a public limited company, the general public is invited to buy the shares of the company. Hence, anyone can invest in a public company that improves the capital of the proposed company.

• Borrowing Capacity

  A public company can enjoy unlimited sources for borrowing funds. It can issue equity, debentures and can accept the deposits from the general public by selling its shares. Moreover, most of the financial institutions find public companies more prominent than other unregistered companies.

• Fewer Risks

  Since public companies can sell their shares to the public, it lesser the scope of unsystematic risks of the market.

  Better Opportunities For Growth And Expansion Of The Company:

• Fewer risks lead to better opportunities so that the company can grow and expand by investing in new projects from the funds raised by selling its shares in the market.