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

Annual Compliances

Post Formation Compulsory Compliances

Compliances & Registrations After Formation

Company Formation Package

INR 33,699/-*

All inclusive

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

*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.