Public Limited Company : Advantages, Procedure, Required Documents

What is a Public Limited Company?

As the name suggests the Public limited company means a company in which the public is substantially interested. However, this statement is not always true as a Public limited company which is not Listed and does not call public for share subscription can be a Public company with Public placement.

Advantages of Public Limited Company

• No limit to Fund
• Access to Public by IPO
• No Limit on the number of members and shareholders
• Listing of Shares on Stock exchange for
• Separate legal entity

Disadvantages of Public Limited Company:

• Expensive.  
• Time-consuming process.
• Pay Attention to Equity Dilution. 
• Loss of Management Control. 
• Increased Regulatory Oversight. 
• Enhanced Reporting Requirements. 
• Increased Liability is Possible.

Procedure

1.  Application for Digital signature
2.  Application for Director Identification Number (DIN)
3. Application for Name Approval
4. Drafting & Signing of MOA and AOA
5. Filing of Required documents
6. The issue of Certificate of incorporation
7. Post Incorporation compliance
8. The issue of Certificate of commencement of Business
9. PAN Card Application
10. TAN Card Application
11. Initial public Offer (If shares planned to issue to the public
12. Listing Procedures

Characteristics of Public Limited Company

• Preferred by banks, VCs & investors
• The separate legal entity which limits your liability.
• Easy to allocate and redistribute shares to investors or other directors.
• Easy to register, manage & run
• Easy to dissolve or wind-up
• Offers the flexibility of a partnership firm and the advantages of a Public Ltd Company

Documents required for a Public Limited Company

• PAN and Residence proof of Directors in the company.
• Passport size photograph of Directors.
• Copy of Aadhar Card or Voter Identity card.
• Copy of Rental Agreement or Electricity Bill card of the business place.

AKT Advantage

• Pre-incorporation advise whether a Pvt Limited is suitable for your business
• Planning and advisory to Listing and Initial Public Offer
• Advise on mandatory and unnecessary compliances to further reduce your cost of compliance
• Complete support and guidance for Pre to post-incorporation compliances
• Up to 75% fewer fees as compared to any reputed firm
• Privilege Support & Guidance by Email, AKT Help desk & Face to face guidance on Skype
• Rs 5000 discount in the next year Annual filing that making your company formation cost lower by 5000
• Futuristic approach for the drafting of AOA & MOA keeping in mind the requirement of future
• Professional drafting of MOA and AOA deed to ensure no complication in future
• End to End services from drafting the documents to post incorporation services

Services provided by us

• Incorporation for Public Limited Company
• Incorporation for Public Limited Company
• Non profit / Section 25 company
• Conversion of proprietorship firm into Pvt / Public limited
• Conversion of Partnership firm into Pvt / Public limited
• Conversion of Pvt limited company to LLP
• Other related services
• Listing of companies to the stock exchange

Examples of Public Limited Company:

In the Indian scenario, any company name ending with LTD. is an example of it.

Example- INFOSYS LTD & TATA SONS LTD