Kick Start Your Public Limited Company Registration at Aavana in 3 Easy Process
Aavana is one of the country’s largest business service platforms for Public Limited Company Registrations. Our aim is to help the entrepreneur on the legal and regulatory requirements. We provide support at every stage to ensure the business is a huge success. We have our head office located in Bangalore with a PAN India presence.
Public Limited Company Registration is one of the most versatile forms of business entity in India. It needs to be registered as per the rules and the regulations laid down by the Ministry of Corporate Affairs (MCA) to avail several benefits at large.
Issue of Memorandum of Association (MOA) and Articles of Association (AOA)
Issue of the PAN and TAN
PUBLIC LIMITED COMPANY AND ITS FORMATION A company well established and wants to be globally recognized can opt for a public limited company. It is a voluntary association of members and upon registration has a separate legal entity. The liability of the members is limited in case of the public limited company. A public limited company must have a minimum of seven members and there is no maximum limit.
PROCESS INVOLVED IN PUBLIC LIMITED COMPANY REGISTRATION
It needs the consent of the Directors to act as such in Form No.29.
Form-20 has to be duly signed by one of the Directors to file a declaration.
Digital Signature Certificate (DSC) of at least one Director with self-attested copy of identity and address proof is mandatory.
Digital Identification Number (DIN) of the Director is a must.
Approval of the name for the company.
Drafting the Memorandum of Association (MOA) and Articles of Association (AOA).
It is important to file necessary documents like MOA, AOA, Form DIR-12, Form INC-22, and Form INC-7.
Finally obtaining the certificate of registration
As per the Companies Act of 2013, there is a requirement of a minimum two directors and seven shareholders to commence the business of a public limited company. However, there is no maximum limit.
The minimum share capital that is required to be invested is Rs. 5 lakh (in the form of Authorized Capital) or a higher amount based on the requirement.
A public limited company needs to issue a brochure inviting the public to subscribe for the shares of the company.
It is mandatory for a Public Limited Company to attest the word ‘LIMITED’ after the name.
In case of any loss, the shareholders or the members can sell the assets liable to the company in order to safeguard their personal assets.
To commence the business a Public Limited Company needs to raise 90% of the amount through the issue of shares.
Easy to raise funds
It is very easy for a public limited company to raise funds through issue of shares to the public. A company having a good reputation will attract many people and if listed in the Stock Exchange will be an added advantage since it can raise multiple investments from various funding sources.
Risk will be minimized
The company faces the risk of ownership to other shareholders when offering shares to the public. This allows the investors in the company to sell some of their own shares at a profit while still retaining a considerable stake in the company. Hence the risk will be minimized to a large extent.
Huge scope for growth and expansion
A Public Limited Company has a better scope for growth and expansion. As it enjoys the creditworthiness it will attract more funds in the form of bank loans.
As the shares are issued to the public, the liability will be limited to the owners or shareholders assets of the company. In this way, the member’s personal assets and the property will be safeguarded.
Easy to transfer the shares
In a Public Limited Company, it is very easy to transfer the shares. The shares can be transferred to the buyer by signing the share transfer forms.
Most widely preferred business entity
As the company’s business is legal and transparent a Public Limited Company is known to be one of the most popular forms of business structure among the investors and the shareholders.
Yes, an office address is very much required for starting a Public Limited Company in India. The premises can be a commercial/ industrial or a residential where communication from the Ministry of Corporate Affairs (MCA) will be received.
It may take anywhere between 14-20 working days. To ensure speedy registration, kindly choose a unique name and ensure that all the relevant documents are submitted on time to prevent unnecessary delay.