What is a Public Limited Company?
This type of organization in characterized by the fact that ownership and management is separate. The capital of the Company is provided by a group of people called shareholder who entrust the management of the Company in the hands of persons known as Board of Directors. Public Limited companies can sell share on the stock exchange are Public Limited companies.
What are the Advantages / features?
- Separate Legal Existence
- Limited Liability
- Flexibility of Ownership
- Separation of Ownership and Management
- Tax Planning
- Perpetual Succession
- Easy Transferability
- Borrowing Power
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.
What are the Requirements for Public Limited Company Registration in India?
In India, You can set your Public limited company anywhere but there are minimum 7 shareholders and three Directors required. The Directors can also be shareholders. The minimum paid up share capital requirement of worth INC 5 lakhs now has been removed by the Companies Act 2015.
What are the benefits of Registering a Public Limited Company?
There are several Benefits of a public limited company which are given below:
- The Public limited company has the feature of huge magnitude of capital than that of the Private limited company
- It has a legal authority to trade on a stock exchange
- There can be many shareholders, no limit
- The liabilities of the shareholders are limited. It means limited roughly to the face value of the shares they own. Moreover, shareholders do not have to take part in the day-to-day management of the business of the company.
- Shareholders are entitled to transfer their shares freely without needing the consent of someone.