Public company means a company which is not a private company and doesn't have any prescribed minimum capital limit. A Private company which is subsidiary of a public company shall be deemed to be public company for the goal of this Act, even where such ancillary company continues to be a private company in its articles. A public limited company is a team that has acknowledgment to offer its securities for sale to public, typically through a stock exchange, or sometimes a company whose stock is traded through different market makers.
- A public limited must have at least seven shareholders.
- A public company needed to have at least three directors
- A public company is not authorized to commence business upon the issue of incorporation certificate. It has to obtain commencement of business certificate.
- It must issue a prospectus or file a statement in lieu of a prospectus before starting business transactions.
Advantage of public Limited
- Public limited Company can mobilize more capital as there is no limit to the number of shareholders
- There is no restriction in the transferability of shares and the public limited company can mobilize funds from public.
- Borrowing power in case of public limited company is very high.
Disadvantage of Public Limited
- Cost involved in forming a Public Limited company is very High and Compliance norms are also vast in case of a public limited company.
- Promoters have no control in the ownership in case of public limited company
- There is loss of control in business
- Taking a decision is very difficult and there may be disagreement between parties to the contract
- Lots of statutory regulations to complied with.
- Disclosure of financial among public is mandatory.
Process of Incorporation
- Applying Digital Signature Certificate (DSC) for all the proposed directors
- Applying Director Identification Number (DIN) is mandatory for all directors.
(Note: Once if we apply DIN for a director that can be used for appointment in any number of companies.)
- Name availability check:
- Client can give Six names in order of preference
- Solubilis will check the availability of names with Ministry of Corporate Affairs.
- Discuss with the client for name and object finalization
- Filing name form with concerned Registrar of Companies (ROC) for their approval.
- After name approval, Solubilis will prepare incorporation documents such as MOA, AOA, Affidavits etc.,
- Discuss with client for finalising capital, There is no minimum capital limit prescribed for a limited company , We can start a company with a capital of even Rs.10000/-.
- After Getting Signed documents from the client, We will file incorporation with ROC with prescribed fee.
- Getting incorporation Certificate.
- Applying PAN and TAN for the company.
Proposed Director & Shareholder is a Indian Citizen
- Copy of Pan self attested - MANDATORY
- I.D proof any one copy of (Voter id, Passport, Driving License, Aadhar Card) self attested & attested by gazetted officer
- Proof for address any one Copy of (Bank statement, Electricity bill, telephone bill, mobile bill) self attested & attested by gazetted officer.
(Note: The above documents should not be older than 2 months.)
- Latest Passport Size Photo 2 Copies.
Proposed Director & Shareholder is a foreign national
- Copy of Passport - MANDATORY (notarized in home country)
- Copy of Address Proof (notarized in home country)
- Copy of Proof of nationality (notarized in home country).
(Note: Apart from notary, the documents to be either apostilled or consularized based on the country.)
- Passport Size photo 2 Copies.
Register office documents:
- The proof of evidence of any utility service like Telephone Bill, gas Bill, electricity Bill, etc. depicting the address of the premises in the brand of the partner or record, as the case may be, which is not older than two month.
- The authorization from the partner or recognized holder of the premises to use the premises by the company as its registered office (No Objection Certificate); and
- Copy of lease or rental agreement, if the Registered office taken on Rent;