Public Limited Company
Public Limited Company is one of the corporate legal entity in India that can be easily incorporated with very few prerequisites. Public Limited company registration is governed by the Ministry of Corporate Affairs, Companies Act, 2013 and the Companies Incorporation Rules, 2014. According to the rules by the ministry, to register a public limited company one should have a minimum of Seven shareholders and Three directors. A person can be both a director and shareholder, while a registered corporate legal entity can only be a shareholder.
Still, Setting up a company to run your business can be a difficult prospect if you are doing it for the first time. SimplyBusiness has helped many individuals with company registrations. So if you choose use to form a company for you, we are with you at every step guiding you to the unfamiliar legal and financial terminologies and procedures.
SimplyBusiness is the web-based and technology-driven pioneer for legal and financial consultancy and services relating to company registration in India. SimplyBusiness can help you register a private limited company, one person company or section 8 company. The average time required for full procedure for company formation is about 10 – 15 working days. Get a free consultation for private limited company registration by filling the contact form to request a call from SimplyBusiness Advisor.
Minimum 7 Shareholders
Minimum 3 Directors
- Minimum Authorised Share Capital Rs. 500,000 (INR Five Lac)
- One of the Directors must be Indian Resident
Q. What should be done to quickly incorporate my Company?
A. To incorporate a Company quickly, make sure the proposed name of the Limited Company is very unique. Names that are similar to an existing private limited company / limited liability partnership / trademark can be rejected and additional time will be required for resubmission of names.
Q. What documents required to set up Public Limited Company in India?
A. You need to arrange very simple documents of directors like photograph, Pan card and one address proof.
Q. Who is Registrar of Company (ROC)?
A. ROC is a Government office with whom companies get registered. Every State has one ROC office except Maharashtra and Tamilnadu where there are two ROC offices. In Maharashtra companies are registered with Mumbai & Pune ROC. In Tamilnadu companies are incorporated at Chennai and Coimbatore ROCs. In all other States like Delhi there is only one ROC office, like at Bangalore, Hyderabad and so on.
Q. Do I have to physically visit ROC Office while Setting up company?
A. No. SimplyBusiness provides complete online Company Incorporation process. All legal documentation and visits are done by SimplyBusiness
Q. Is Public Limited Incorporation to be renewed every year?
A. No. Once the company is formed, it will be valid till it is officially closed down by the owners. No renewal or fees is required. However, every year companies have to file very basic returns with ROC office.
Q. How long will it take to incorporate a Company?
Q. What is capital of the Company?
A. Capital means investment made by shareholders into the company. Authorised capital is an amount up to which company can issue shares. This capital is mentioned during incorporation of the company based on which ROC registration fees and stamp duty is paid. Paid up capital is an actual investment which goes from shareholders into company bank account, against which share certificate is issue by the company.
Q. Do we have to deposit Share Capital in a Bank at the time of Incorporation?
A. No. After company is registered, it need to open a company bank account and then anytime within two months of incorporation, capital can be deposited into Company bank account.
Q. Does my business have to have some level of turnover to start Public Limited?
A. This is not true, a Public limited company is one of the mode of doing business, which means it can be started from scratch. For that matter even after incorporating a Public limited there is no obligation that the company must have sales or turnover.
Q. Does PF, Service Tax or VAT is automatically applicable to Public Limited?
A. There is no automatic applicability. Provident Fund (PF), Service Tax or VAT law applicability is same for all types of businesses like sole proprietorship, partnership firms and companies. These laws are applicable only after crossing certain threshold limits.