What are the features of Public Limited Company?
A public limited company is known to be a voluntary association of the members that are incorporated, have a separate legal existence and limited liability. A public limited company registration in India has a provision under the Indian Companies Act, 2013 regarding the legal formalities for its formation.
What are the features of a public limited company?
Here are some of the features of a public limited company:
• Apart from the forming members, the public limited company has its separate legal existence.
• Formation, functioning and working of the public limited company is strictly governed by the rules, laws, and regulations under the Indian Companies Act, 2013.
• A company should have a minimum number of seven members for the registration while there is no limit for a maximum number of members for existence.
• A registered public limited company remains unaffected by the retirement, death or insolvency of any of its shareholders.
• The shareholders of a registered public limited company don’t have any right to participate in the daily management of the company’s business. This ensures the separation of the management from ownership. All the powers of decision making are in the hands of the board of directors to ensure the unity of direction management.
• Capital for the company is collected by selling the shares in the market to the respective members in the form of share capital.
• The liabilities of the company’s members are limited to the face value of the owned shares. After paying the whole amount of face value, he has no obligations to contribute the payoff to the creditors of the company.
What are the benefits of public limited company?
Below are some of the benefits of public limited company you must know before registration:
• Unity of direction
• Continuity of existence
• A large amount of capital
• Efficient management
• Unlimited number of members
What are the documents required for public limited company registration?
After getting through all the benefits of public limited company here is the list of documents you will require registering it under the Indian company act, 1956:
• Copy of the PAN card with self-attestation
• Passport size photograph of all the directors.
• In case of rented commercial place copy of rent agreement along with no objection certificate from the owner.
• If the property is owned by the shareholders than you will require just a copy of sale deed along with the latest electricity bill.
• Copy of voter id or Aadhar card or passport or driving license with self-attestation.
• Copy of any of the latest property tax receipt or electricity bill or water tax receipt.
• Latest bank account statement or electricity or telephone bill that is not older than two months.
• Copy of lease agreement.
• In case of NRI, passport copy has to be notarized at the Indian embassy of the respective country.
Are you looking for the best advisors for public limited company registration? Then your search ends over here. Swarit advisors provide you the best legal services through their well experienced legal advisors. For more information regarding public limited company registration, you can contact us.