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Public Limited Company registration

Companies Act, 2013 lays down two types of companies –

1. Public Limited Companies   2. Private Limited Companies.

Section 2 (71) of the Companies Act, 2013 defines a public company as a company which is not a private company. Subsidiary of a public company  (even if a private company) shall be counted as always a public company.

Comparison between Private Limited Company and Public Limited Company.

 

Sr No.  Public Limited Company Private Limited Company
1. Listing Shares may be listed on a stock exchange. Shares are not listed on a stock exchange.
2. Shares Shares of a public Company (listed or otherwise) have to be dematerialized compulsorily. Shares of a private company may be issued in physical form or dematerialized form.
3. Number of Members

 

 

Minimum number of members – 7.

There is no ceiling on the maximum number of members in a public company.

Minimum 2 members.

It can have maximum of 200 members.

(Except in case of a One Person company , where minimum number is 1)

4. Number of Directors

 

 

Minimum number of Directors is 3. Minimum number of Directors is 2.

(Except in case of a One Person company , where minimum number is 1)

5. Quorum

 

 

Minimum 5 members, personally present, are required for quorum at General Meeting Minimum 2 members, personally present, are required for quorum at General Meeting
6. Transferability of Shares

 

 

No restriction on the transferability of the shares. Restrictions on the trans­ferability of the shares of a Private Company through its Articles of Association.
7. Funding

 

 

Can raise funds by issuing shares to the general public. Can raise funds by issuing shares to existing shareholders (Rights Issue) or by private placement method.
8. Compliance Compliance requirements are a lot wide-ranging and extensive in nature. Almost all compliance detailed in the Companies Act have to be followed.

Listed Public Companies have to follow SEBI rules and specific listing rules of the exchanges on which they are listed.

Compliance requirements are much lesser in nature.

Various exemptions have been given in the Act, mainly by Amendment Act, 2015 and the exemption notifications issued in 2015 and afterwards.

Incorporation of a public company is now largely same as that of a private limited company (via spice form).

You can read about private limited Company registration here.

Documents required shall be briefly as follows:

  1. Digital signature for all shareholders
  2. PAN and Adhar card for all Indian shareholders
  3. Prescribed ID and address proofs for all shareholders
  4. Prescribed ID and address proofs for all directors
  5. Address proof for the registered office address

Our Business start up Team can assist you professionally in incorporating a public limited company. Our team is composed of professionals engaged in corporate practice and has wide experience and expertise in this matter.

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