Structured Biiz

PUBLIC LIMITED COMPANY

Who must opt for a Public Limited Company & Why?

Section 2(71) of the Companies Act, 2013 defines Public Limited Company as a Company which is not a Private Limited Company and a Company with a  minimum Paid Up Capital as may be prescribed. Further as per the definition, a Private Company gets covered under the definition of a “Public Company”, once the Private Company becomes a subsidiary of a Public Company.  Minimum number of members / shareholders required in a Public Limited Company is 7 (Seven) and minimum number of Directors required in a Public Limited Company is 3 (Three).

A Public Limited Company enjoys the status of being a separate legal entity having perpetual existence, unless dissolved. It can own, sell and transfer property and can also incur debts.

It enjoys a Limited Liability structure benefits, wherein the Owner’s personal assets are not attached to the business liabilities for repaying off the debts or for paying off the creditors.

There are so many ways to raise funds in a Company:

  • Apart from avenues available to a Private Limited Company for raising of funds, the Public Limited Company can raise funds through Public issue of shares by listing on the Stock Exchanges.
  • Public Limited Company can accept Deposits too, subject to the conditions of the Companies Act, 2013 and the rules made thereunder being fulfilled.

Shares are freely transferable as compared to a Private Limited Company.

Cons

Mandatory Audit, Tax Filing and Secretarial Compliance Filings

  • A Director of the Company can be disqualified for a period of 5 years by the Registrar of Companies, in case the Director has not filed the Financials or Returns for a continuous 3 Financial years.
  • If annual compliance forms are not filed within the due date, there is Rs. 100/- per day penalty fee for not filing annual compliances.

 

For raising of funds, procedural aspects and taxation that may be applicable in the instruments utilised needs to be analysed and followed through without any missouts, since repercussions are tremendous in case the full procedure is not followed as per the requirement of Companies Act, 2013 and the SEBI Guidelines for listing of shares.

Dissolution is more complex and expensive than formation. So, you must think carefully before you start.

Requirements

  • Minimum 3 Directors
  • Out of 3 Directors, Minimum 1 Resident Director
  • Minimum 7 shareholders / Subscribers who are called the Owners of the Company
  • Authorised Capital – No minimum Authorised Share Capital Requirement
  • No Minimum Paid Up capital requirement. However, minimum 1 share is required to be subscribed by 7 subscribers (Shareholders)

Annual Compliances

Post Formation Compulsory Compliances

Compliances & Registrations After Formation

  • MCA Filings
  • Accounting & Auditing
  • IT Filing
  • GST Compliances, if registration already obtained
  • MCA Filings that includes filing of forms for:
    Commencement Certificate
    Appointment of Auditors
    DIR-3 KYC of Directors
    Return of Deposits, in case, if any obtained
    Preparation of Statutory Register
    Dematerialisation of Equity Shares (Compulsory for Public Limited Co.)
    Conducting First Board Meeting within 30 days of incorporation Conducting 4 Board Meetings in a year
    Conducting 1 Annual General Meeting
    Annual Disclosures of interest / non-disqualification by Directors
    Filing of Financial Statements & Returns with the Registrar of Companies
    Appointment of CS or CFO or CEO
  • Trademark Registration to register Brand name and logo of the Company
  • GST Registration & Compliances
  • Profession Tax filing, in case the Company has hired any employees
  • Trade License, in case of requirement
  • Employees Provident Fund Organisation Registration / Compliances will be applicable once the Company crosses the threshold no of employees i.e., 20 employees
  • Employee State Insurance Corporation Registration / Compliances will be applicable once the Company crosses the threshold number of employees i.e., 10 employees in Other states & 20 in Maharashtra
  • Appointment of a Company Secretary in case Paid-up Capital of a Company exceeds Rs. 10 Crore.
  • Secretarial Audit, once the Public Company crosses the paid up capital limit above Rs. 50 Crore or more or turnover of Rs. 250 Crore or more
  • & Many More…

Company Formation Package

INR 33,699/-*

All inclusive

  • Company Formation with INR 10 Lac Authorised Capital;
  • 7 Class III Digital Signatures for Directors & Subscribers;
  • Director Identification Number for 3 Directors;
  • Application for the availability of name of the Company;
  • Drafting of Memorandum & Articles of Association of the Company;
  • Preparation and filing of formation documents of the Company;
  • Payment of registration fees to the Registrar of Companies;
  • Obtaining Certificate of Incorporation from the Registrar of Companies;
  • PAN and TAN of the Company
  • GST Registration (Optional)
  • Employees Provident Fund Organisation Registration (Compliances will be applicable once the Company crosses the threshold no of employee i.e., currently 20 employee)
  • Employee State Insurance Corporation Registration – (Compliances will be applicable once the Company crosses the threshold Limit – 10 employees in other states & 20 in Maharashtra)
  • Shops & Establishment Certificate Registration
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Timeline: 10-20 Days
*Inclusive of Govt. Fees on Form filing. Govt Fees is as applicable in Maharashtra. Govt Fees will vary as per the State and the Govt fee over and above mentioned herein above shall be payable by the Client.

Request you to provide 2 Unique Names of the Company. In case the name approval is not granted in the first instance, Govt Fee of Rs. 1,000/- and Our Fee of Rs. 999 shall be charged separately for re-application of name.

Post Formation Compliance Package

INR 30,999/-*

Inclusive of GST

  • Preparation of documents for opening a Current Account;
  • Filing of Certificate of Commencement of Business;
  • Appointment of First Auditor & filing of document in regard to the same;
  • Obtaining Statutory Declaration from 3 Directors;
  • Filing of DIR-KYC of 3 Directors;
  • Preparation of Statutory Registers;
  • Preparation of First Minutes of the Board Meeting;
  • Dematerialisation of Equity Shares (Compulsory for Public Limited Co.);
  • Post Formation Compliance Guidance!!
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*Excluding Govt. fee and reimbursements, if any.
and any penalty levied due to delay from the Client's end.
Dematerialisation Fee charged by RTA and Depository shall be charged separately.