It is a Company whose shares are traded independently on a stock exchange.
What is a Public Company?
A Public Company is also known as a Public corporation which is involved in public trades and is held by the public. The ownership of a Public Company is distributed amongst the general public in multiple shares of stock, which is independently traded to various stock markets. Depending on the size of the Company these must be listed on an exchange. A Public Companies are strictly monitored, and as per the law they need to publish their accurate financial positions, which benefits the investors in determining the true worth of the shares. The moment a Company goes Public, it is answerable to the shareholders.
Why set up a Public Company?
A Public Limited Company differs from other types of companies and it is the only form of company that offers shares to the public. There are several advantages which can contribute to the reasons for setting up of a public limited Company;
- It is listed on the stock exchange.
- It can carry on with any form of business.
- A Public Company can be operated anywhere in the world.
- The liabilities of the shareholders are restricted only to their shares(limited).
- Easily incorporated, the process of registration being simple.
- Flexibility in choosing of name.
Requirements for a Public Company
The minimum requirements for a Public Company are as follows;
- Minimum paid up capital of Rs. 5 Lakhs
- It needs to have minimum three directors
- DSC & DIN for three directors
- Company Name needs to be chosen
- You should have a valid company address
- A minimum of seven members needs to be associated
- MOA( Memorandum of Association) is to be created which should contain details of the initial shareholders & directors
- AOA(Article of Association) needs to be submitted which would have the rules about the working of the company written on it
- Certificate of Incorporation to be obtained from ROC (Registrars of Company)
Documents for Public Company
The documents required for the incorporation by the shareholders and directors of the company are as follows;
- A copy of PAN card which should be duly signed by the promoters
- Identity Proof: Either of the following documents needs to be submitted supporting the identity proof of the promoter
- Voter Id
- Passport copy
- Aadhar card
- Driving license
- The document needs to be self-attested
- Address Proof: Latest Bank account statement or Mobile /Telephone bill or Electricity Bill . It shouldn't be older than two months
- Photo proof: Latest passport size photo in jpg format needs to be submitted
Documents for Registered Office
- Copy or rental agreement or lease agreement(in case the office is rented)
- Address Proof: Copy of Electricity bill or Property Tax receipt or Water Tax Receipt (not older than two months)
- A No Objection Certificate is obtained from the owner of the property
- A copy of Sale Deed and Electricity bill is sufficient, if the property is owned by you
- NRI or Foreign national, needs to submit copy of Passport which has to be notarized at the Indian Embassy of the particular country
- Utility bill has to be provided of the particular country where the NRI or Foreign national resides and it should be notarized
Cost for Public Limited Company
The cost would include the professional fees, the affiliated fees, the application charges and the government fees. These vary on the amount of capital and also the state of incorporation.
