Public Limited Company India

A Public Limited Company

  • A Public Limited Company in India is a type of business entity that is publicly held, which means its shares are available for the public to buy and trade on stock exchanges. Public Limited Companies are suitable for larger enterprises with a broad shareholder base and significant capital requirements. Here are some key features and requirements for setting up and operating a Public Limited Company in India:
  • Minimum Requirements:

  • Minimum of seven shareholders: A Public Limited Company must have a minimum of seven shareholders, and there is no maximum limit.
  • Minimum of three directors: There must be at least three directors, and at least one of them must be a resident of India.
  • Unique Name: The company's name must be unique and should not be similar to any existing company's name.
  • Limited Liability: Shareholders' liability is limited to the amount of capital they have invested in the company, and their personal assets are protected in case of financial difficulties faced by the company.
  • Share Capital:

  • There is no specific minimum capital requirement to start a Public Limited Company in India.
  • The authorized and paid-up share capital can be decided by the promoters.
  • Public Offering: Public Limited Companies can issue shares to the public through initial public offerings (IPOs) and can be listed on stock exchanges.
  • Separate Legal Entity: A Public Limited Company is considered a separate legal entity distinct from its shareholders. It can own property, enter into contracts, and sue or be sued in its own name.
  • Registration Process:

  • Choose a unique name and apply for its reservation with the Registrar of Companies (ROC).
  • Draft the Memorandum of Association (MOA) and Articles of Association (AOA).
  • File the incorporation documents and pay the required fees to the ROC.
  • Obtain a Certificate of Incorporation from the ROC.
  • Compliance:

  • Public Limited Companies must comply with various statutory requirements, including filing annual financial statements, conducting annual general meetings, and maintaining proper accounting records
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