Public Limited Company
Features that make a Public Limited Company Different from Private Limited Company:
- Shares offered by a public Ltd. Co. are easily transferable to any other person, such that it merely requires filing and signing of share transfer form to transfer the shares.
- A Public Ltd. Co. is the highest corporate structure to start with.
- In Public Limited Company shareholders have a claim to part of the company’s assets and profits.
- Public Limited Company can have any number of members.
- Shares are easily transferable in Public Limited Company.
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Q.1 What is a Public Limited Company?
The term Public Limited Company is the wider form of Limited company that includes no restriction from the maximum number of shareholders to the transfer of shares which cannot be done by a Private Limited Company. It raises its fund through public and accepts the public deposits. The Board of Directors has the power to govern and manage the Public limited company constituted as per the unanimous consent of the shareholders. However, there is a much more compliance burden on the Public limited company than Private Limited Company.
Q.2 What are the Liabilities of Public Limited Company?
The Public Limited Company deals with the public money and it has to make rather heavy compliances strickly that is bulkier than the Private limited company. Apart from the regular compliances related to Income tax, there are many periodic and annual compliances to be made by a public limited company with ROC/MCA, RBI etc. In addition, these regulatory liabilities are to secure and promote the profits and welfare of all shareholders of the Public limited company.
Q.3 What is the Director Identification Number (DIN)?
Any individual intends to become the director of the company must apply to the Director Identification Number, there is no special form is required to have the DIN from now onwards. One can apply for the DIN with the SPICe form. No special form is required.
Proof of the Identity and address is required to be submitted along with the requisite fee. The DIN usually takes 3-4 days to get approved. Once you get the DIN, the same can be used for the lifetime.
Q.4 What will be the address of the registered office of the company?
The Registered Office does not mean to be owned only; it can be rented premises also. The registered office is used for the purpose of holding a general meeting, keeping records and receiving correspondence from all the statutory government timely. It also specifies the jurisdiction of the registered office.
Q.5 Can we change the Registered Office of the Company?
Yes, we can easily change the registered office of the company any time after the specified procedure is completed. The changed address can be situated within the same state or in a different state, depending upon the conditions.
Q.6 How much Capital is required for running a Private Limited Company?
There is no bar in particular on the minimum capital requirement to run a private company. Although an amount equal to Rs 500 are spent on the ROC Compliances of the private limited company. It would hardly take 40,000 to 50,000 to register a private limited company.
Q.7 What are the important documents required before starting up with the registration process?
The most basic and important documents required before starting up with the incorporation of the company is PAN card, Aadhaar card, ID’s, photo and contact details of all the directors, bank statement, electricity bill, rent agreement with the slip or proof of ownership.
Q.8 How to Register a Private Limited Company?
- Apply for name reservation of the Company in Part-A of the SPICe+ form.
- Apply for Digital Signature Certificate which is required to file the forms of company registration. The Procedure to register a company is online and requires DSC.
- Within 20 days of the approval of the name of the company the SPICe+ form which is an advanced combination of 8 forms shall be filled up and applied at once.
- DIN- Apply Director Identification Number.
- File the necessary documents like MoA, AoA, EPFO, ESIC, Identity Proof, Address proof, PAN and TAN to go for Private limited company registration.
- It is mandatory to fill up the AGILE form to obtain the GSTIN.
- Once the file is submitted on the MCA portal, it shall be scrutinised and certificate of incorporation shall be granted by the MCA Officer.