Incorporation of Public limited company in India is almost similar to a private limited company except minimum requirement of directors and members are 3 and 7 respectively.
Public Limited company gives benefit to firms for selling shares to investors and for raising capital in order to achieve expansion.The loan procedure for Public limited companies are easier as the Bank gives the at most importance in terms of trust in public limited companies.
Accotax helps to bring transparency and easy transferability of ownership and shareholding by Registering Public Limited Company Registration.
Entrepreneur prefer to incorporate Public Limited company because the range of benefits it provides:
Can raise funds from the public by issuing shares subject to compliance of other provisions of the Act.
Get a privilege to get recognised in stock exchanges
Company's shares can be easily transferred without any restriction
There is no limitations of no. of member/shareholders
Benefits To form a Public Limited Company:
Easy to Raise Capital
Raising capital is much easier for a public limited company through public subscription as well as stock market (if listed)
Separate Legal Entity
Public Limited Company enjoys the benefit of Separate Legal Identity in the eyes of law which clearly states that assets and liabilities of the business are not the assets and liabilities of the Directors.
All the information relating to the company are made available in a public database. This feature makes it easy to authenticate the existence of the business that ultimately helps in improving business credibility.
Shares of the public limited company are purchased and sold in a stock exchange market. They are freely transferable between the members and people trading in the stock exchange.
The company keeps on existing in the eyes of law even in the case of death, insolvency, the bankruptcy of any of its members and the succession would be valid.
Access to Finance
A Public Ltd. Co. can easily obtain funding from Banks and other financial institutions since they are more willing to extend financing to this type of company.
Scope for expansion
There is unlimited scope for growth and expansion of business in Public Limited Company and New shares can be used to raise additional capital in Public Limited Company.
Directors and Shareholders have no personal liabilities. Limited Liability protects the personal wealth of the shareholders and directors therefore owners will never lose more that they have invested.
Shareholders have powers to elect and remove directors and they can exercise control over management in general meetings of the company.
Documents Requirement for Public Limited Company
Photographs of all Proposed Shareholders & Directors
PAN card Copy of all Proposed Shareholders & Directors
ID Proof - Driving License / Voter ID / Passport (anyone) of all Proposed Shareholders & Directors)
Address Proof - Bank Statement / Telephone or Mobile or Electricity Bill (not more than 30 days old) of all Proposed Shareholders & Directors
Email ID and Mobile Numbers of all Proposed Shareholders & Directors
Aadhar card ( Optional )
Proposed Company Registered Office Address Proof - Telephone or Mobile or Electricity Bill (not more than 30 days old) + NOC from property owner
DIN ( Optional - In case any proposed director already have Active DIN )