The features of a Public Limited Company are mostly similar to that of a Private Limited Company. We briefly discuss the same as under:
- It is a legal entity different from its members. It can hold property, borrow money etc. as a natural person.
- Section 3 of the Companies Act 2013 states that seven or more persons are required to form a Public Limited company. Unlike a private Limited company, there is no restriction on the maximum number of shareholders.
- Shareholders’ liability is limited to the extent of their unpaid share capital. The shareholders need not pay their personal money for the company Debt.
- It is an investor friendly organisation, public at large can participate in their equity. The public limited company can invite deposit from the public.
- Company form of entity will have a perpetual succession and continue forever.
- Company will be managed by the Board of directors, there should be minimum of 3 directors and a maximum of 15 members in the Board.
- The shares of the Public limited company are freely transferable from one person to another person.
- Name of the company should always carry the words “Public Limited” in order to identify the entity.
- It is a public investor oriented organisation, strictly to comply with complex rules and regulations. Public limited companies should maintain complete transparency in offering information to the public.
- This is the best and most suited forms of organisation for a large corporate. Public limited companies are mostly manged by professionals.
- Public limited companies have access to large financial resources which is an instrument for the growth of the public limited companies.
Proposed director & Shareholder - Indian Citizen:
- Aadhar Card.
- Proof for Address – Bank Statement or Telephone Bill or EB or Mobile Bill (Latest)
- Passport Size Photo.
Proposed director & Shareholder - Foreign National:
- A Copy of Passport ( Notary and Apostille is required )
- A copy of address proof ( Notary and Apostille is required )
- A copy of nationality proof ( Notary and Apostille is required )
- Two passport size photo
Register Office documents:
- If the Office is rental, rental agreement is inevitable
- Electricity bill (Not more than two months old required to be submitted)
- A Occupant needs to provide a No Objection Certificate from landlord to operate the business (NOC) if not rented.