A public limited company is a very popular structure of business at large scales. In india lot’s of industries are running in form of public limited companies and generating huge revenue for the country and for the share holders, there is no restriction of members number in public limited company , private limited company also have a restriction on maximum no. of members.
A public limited company voluntary association of members which is incorporated and, therefore has a separate legal existence and the liability of whose members is limited.
FEATURES OF PRIVATE LIMITED COMPANY
- The Public limited company has a separate legal existence apart from its members .
- The Public limited company must have a minimum of seven members but there is no Restriction/ prohibition as regards the maximum number.
- The public limited companies must have minimum of two Directors for running the business activities
- The public limited company collects its capital by the sale of its shares and those who buy the shares are called the members. The amount so collected is called the share capital.
- The shares of a Public are freely transferable and that too without the prior consent of other shareholders or without subsequent notice to the company.
- The formation formation, working and its winding up, in fact, all its activities are strictly governed by laws, rules and regulations. The Indian Companies Act, 2013
- The public limited companies have a wider area of raising funds
- In public limited companies liability of a member of a company is limited to the face value of the shares he owns. Once he has paid the whole of the face value, he has no obligation to contribute anything to pay off the creditors of the company.
- A public company has permission to issue registered securities to the general public
Advantage of a Public limited Companies
- Limited liability: liability of public limited companies is limited. Share holders is not individually liable for payment, Share holders liability limits up to the face value of the shares of the company
- Members : public limited should have minimum 7 members . There is no limit for maximum no. of members
- Board of Directors: Public limited companies are headed by the Board of directors . Public limited companies should have at least three Directors . Directors are elected by the shareholders from among the share holdrs of company in annual general meeting of share holders .
- The Directors of Companies always work as representatives of share holders while the managing the company and taking the decisions.
A public limited company’s shares are purchased and sold on the market. They are freely transferred among the members and the people trading on stock markets.
PROCEDURE OF REGISTERING A PRIVATE LIMITED COMPANY
- Filling Application for Reservation of name
- Apply for digital signature
- Preparation and signing of incorporation documents
- Filling the incorporation form ( spice(32) MOA ,AOA)
- Wait for approval from MCA
- Generation of incorporation certificate
Time limit for registering a private limited company
It may take 10-15 days for registering a private limited company . this time line further subject to the government processing and approval time
Documents Required for the registration of limited company
- Pan card of all the directors & shareholders ( Minimum 3 Directors & 7 Subscribers)
- Adhar card /Voter ID card/ Driving license/ Passport ( all Directors & subscribers)
- Latest bank statement/ copy of passbook /latest utility bill for every director & shareholders
- Latest utility bill & rent Agreement of premises to be used as registered office of company
- Occupation , email id , Phone no. of directors as well as shareholders