Public Limited Company

A Public Limited Company under Company Act 2013 is a company that has limited liability and offers shares to the general public. Its stock can be acquired by anyone, either secretly through (IPO IPO) first public immolation or via trades on the stock call. 
 Characteristics of a Public Limited Company 
 Directors 
 As per the chow of the Companies Act, 2013 to start a public limited company, a minimum of 3 directors are challenged and there's no restriction on the maximum number of directors. 
 
 Limited Liability 
 The liability of each shareholder is limited. In simple words, a shareholder of a public limited company is n’t personally responsible for any loss or debts of the company for any quantity superior than the quantity invested by them; contrary to collaborations and sole trespasses, where the consorts and business holders are jointly and severally liable for the debts of the business. 
 Notwithstanding, this note of a public limited company doesn't offer impunity to the shareholders. The shareholders will be held responsible for their own illegal conduct. 
 
 Paid-up Capital 
 A public limited company is needed to have a minutest paid-up capital of Rs 5 lakh or such a improved quantum as defined under the act. 
 
 Prospectus 
 A prospectus is a comprehensive statement of the affairs of the company issued by a public limited company for its public and there's a essential under the Act for public limited companies to issue a prospectus. Notwithstanding, there are no cognate chow for Private Limited Companies. This is because private limited companies can not invite the public to subscribe to their shares. 
 Name 
 It's a incumbent essential under the Companies Act, 2013 for all public companies to add the word ‘ limited ’ after their name. 
 
 Advantages of Public Limited Companies 
 A Public Limited Company under Company Act 2013 is a company that has limited liability and offers shares to the general public. Its stock can be acquired by anyone, either secretly through (IPO IPO) pioneer public victim or via trades on the stock request. 
 Characteristics of a Public Limited Company 
 Directors 
 As per the victuals of the Companies Act, 2013 to start a public limited company, a minimum of 3 directors are wanted and there's no restriction on the maximum number of directors. 
 
 Limited Liability 
 The liability of each shareholder is limited. In simple words, a shareholder of a public limited company is n’t personally responsible for any loss or debts of the company for any quantity superior than the quantity invested by them; contrary to collaborations and sole trespasses, where the consorts and business holders are jointly and severally liable for the debts of the business. 
 Notwithstanding, this attribute of a public limited company doesn't offer exemption to the shareholders. The shareholders will be held responsible for their own illegal address. 
 
 Paid-up Capital 
 A public limited company is bore to have a fewest paid-up capital of Rs 5 lakh or such a advanced measure as defined under the act. 
 
 Prospectus 
 A prospectus is a comprehensive statement of the affairs of the company issued by a public limited company for its public and there's a requisite under the Act for public limited companies to issue a prospectus. Notwithstanding, there are no suchlike vittles for Private Limited Companies. This is because private limited companies can not invite the public to subscribe to their shares. 
 Name 
 It's a imperative demand under the Companies Act, 2013 for all public companies to add the word ‘ limited ’ after their name. 
 
 Advantages of Public Limited Companies 
 Added capital 
 Shares are offered to the general public at largei.e. anyone can invest in a public limited company. Hence, improves the capital of the company. 
 
 Added attention 
 Being listed on a stock call ensures that collective bankroll, barricade bankroll and other dealers take note of the business of the company. This may redound in better business breaks for the Public Limited Company. 
 
 Spreading danger 
 Since the shares are dealt to the public at large the unsystematic danger of the call is spread out. 
 
 Growth and expansion openings 
 Due to lower peril, there's a perfect opening for growing and expanding the business by investing in new ground plans from the have raised through shares. 
 Needfuls for Registration of a Public Limited Company 
 There are prismatic rules and regulations specified under the companies act, 2013 for the layout of a public limited company. Presently's what you should keep in mind when registering a public limited company 
 
 Slightest 7 shareholders are took to form a public limited company. 
 Minutest of 3 directors is necessitated to form a public limited company. 
 A minutest share capital ofRs. 5 lakhs is necessitated. 
 Digital hand document (DSC DSC) of one of the directors is necessitated while submitting personality- attested replications of identity and address voucher. 
 Directors of the proposed company will need a Racket. 
 An employment is bore to be made for the selection of the name of the company. 
 An employment comprising the main object clause of the company is to be made. This object clause will define what a company will pursue after its avatar. 
 Submission of the employment to ROC along with the bore documents like MOA, AOA, fittingly filled Form DIR – 12, Form INC – 7 and Form INC – 22 is bore. 
 Payment of the prescribed enrollment antes to the ROC is bore. 
 After earning blessing from the ROC, the company should apply for the ‘ document of business get-go. ’ 
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