What is Public Limited Company?
A public limited company is a voluntary association of members that are incorporated and, therefore has a separate legal existence and the liability of whose members is limited. Companies Act, 2013 defines Public limited company as a company which has limited liability and offers shares to the general public. Public limited companies offer shares to the public at large. Anyone can invest in a public limited company. Public Limited Companies have better chances for growth and expansion as the spreads among the public at large. It is required to publish its true financial report to its shareholders.
What are the features of Public Limited Company?
Separate Legal Entity
The company has separate legal existence apart from its members who compose it. As a company is an independent legal person, its existence is not affected by the death, retirement, or insolvency of any of its shareholders.
Laws and Regulation
Its formation, working and it’s winding up all its activities are strictly governed by rules, laws, and regulations.
Number of Members
A company must have a minimum of seven members but there is no limit as regards the maximum number.
The 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 company are freely transferable and that too without the prior consent of other shareholders or subsequent notice to the company.
The 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.
The shareholders of a company do not have the right to participate in the day-to-day management of the business of a company. This ensures the separation of ownership from management. The power of decision making in a company is vested in the Board of Directors, and all policy decisions are taken at the Board level by the majority rule. This ensures the unity of direction in management.
What documents are required for registering a Public Limited Company India?
- Passport size photograph of all Directors
- Identity Proof – PAN Card, voter ID, adhaar card of the proposed Directors of the Company
- Address Proof – Driving license or Aadhar card and Bank Statement or utility bill not older than two months.
- Place of business – Ownership documents/ lease deed, Electricity Bill, bank statement or telephone bill not older than two months. The No Objection from the owner to use the premises as a registered office.
- Proof of evidence of any utility services like gas, electricity, telephone stating the address of the premises bearing the name of the owner or document not older than two months.