Public Limited company’

Public Limited company’ INR - 38,000.00

As per Sec.2(71) of the Companies Act, 2013-

 ‘Public Limited company’ means a company which –                                                         

(a)  Is not a private company

(b)  has a minimum paid-up shares capital of Rs. 5 Lakh or such higher paid-up capital, as may be prescribed by CG.

This types of company grants limited liability to its owners and management. The benefit of being a limited company is raising capital through the selling of shares to the investors. We need Minimum three directors for forming a public company. In Public company there are some more stringent regulatory requirement has been made in comparision to a private limited Company.

Minimum seven members are required for formation of Public Limited Companies and there is no any limit prescribed on the maximum number of members. In a public limited company most of the characteristics are same as private limited company. All the advantages of private limited company are exist in the Public Limited Companies and there is no restrictions on number of members, shares of public company are freely transferable. Name, number of members, shares, formation, management, directors and meetings, etc. is like Identity proof of a Public Limited Company.

Atleast minimum seven members are required to incorporate a Limited Company and there is no limit on the maximum members. Minimum three Directors and seven shareholders is necessary for incorporating a Limited Company.

A natural person who have crossed the age of 18 years can become Director. There are no any concerned arises in terms of citizenship or residency. Therfore, NRI can also become a Directors in a Indian Private Limited Company.

For starting a limited company minimum Rs.5 lakhs [Authorized Capital Fee] is required. which is paid to the Government for issuing a minimum of shares worth Rs.5 lakhs [Authorized Capital Fee] during the incorporation of the Company. there is No any matter arises to show the proof of capital invested during the incorporation process.

It is mandatory for every company to have its own registered office. The premises where the registered office is situated may be for a commercial / industrial / residential purpose. All communications and notices from MCA shall be sent to the registered office of the company. The registered office shall be capable of receiving and acknowledging all communications and notices sent at such office.

This is mandatory for all the proposed Directors of the company to submit a Identity proof and address proof . PAN Card is mandatory document required for Indian residence. Additionaly, A No Objection Certificate from the landlord of the registered office premises is also required. Which proofs that he has no any objections for using his/her premises for official purposes. For this the landlord have to submit his/her id proof and address proof.

Taxsigma can incorporate a Limited Company in 14-20 days. The time taken for incorporation will depend on submission of relevant documents by the client and speed of Government Approvals. To ensure speedy incorporation, please choose a unique name for your Company and ensure you have submitted all the relevant documents prior to starting the incorporation process.

Company becomes active after its incorporation, and it remains in-existence as long as the annual compliances are met on regular basis. Where annual compliances are not complied with on regular basis, the Company name comes in the Dormant Company list and maybe struck off from the register after a period of time. A struck-off Company can be revived for a period of upto 20 years.

Authorized capital is the amount of shares that can be issued to its shareholders. Companies have the liability to pay authorized capital fee to the Government for issuing shares. Companies have the liability to pay a minimum of Rs.5 lakhs as authorized capital fees to the concerned department.

A limited company have the statutory liability to hold a Board Meeting atleast once in every 3 months. Excepting the Board meeting of the company it has also a statutory liability to hold an Annual General Meetings, Atleast once in every financial years.

As per Automatic Route system of FDI, many industries in India allowed 100% Foreign Direct Investment . Under the Automatic Route, only a post-investment filing is necessary with RBI indicating the nature of investment made. There are some industries who require prior approval from the RBI, in such cases, approval must first be obtained from RBI prior to investment.

 

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