Many times businesses need to borrow money and take high investment decisions. Public Limited Company is the best option for entrepreneurs with larger investment requirements. In the case of normal Partnerships, Partners' personal savings and property would be at risk in case the business is not able to repay its loans or the business goes into loss. In a Public limited company, only investment in shares of the business is lost, personal assets of the directors are safe.
A Public limited company is a popular and well-known business structure. Corporate Customers, Vendors and Govt. Agencies prefer to deal with Public Limited Companies instead of proprietorships or normal partnerships.
A Public Limited company can list itself on various stock exchanges in India and raise capital from the stock market. The Limited company also enjoys wide options to raise funds through bank loans, general public and Institutional investors.
Investors love to invest in Public Limited companies as it is well structured and transparent business structures.
Most important it is very easy to exit from a Public limited company, only shares of the company need to be handed over to the purchaser along with the signed share transfer forms.
A Public Company is the best choice for businesses involving heavy investment.
Minimum 7 Shareholders
Minimum 3 Directors
The directors and shareholders can be the same person
One of the Directors must be an Indian Resident
Minimum Authorised Share Capital- ₹ 500,000 (INR Five Lakh)
DIN (Director Identification Number) for all Directors
DSC (Digital Signature Certificate) for two of the Directors
PAN & Aadhar of 2 Directors
Scan copy of Passport size photographs of Both Directors
Scan copy of Specimen Signatures of Both Directors
Address Proof of Both Directors (Eg: Electricity Bill, Telephone Bill etc) in case Aadhar address is different
Latest 3 months Bank statement of Both Directors
Mobile Numbers & Email ID's of Both Directors
DIN for 2 Directors
Digital Signature Token for 1 Director
Company Name Approval
MOA + AOA
Company PAN Card
Company TAN/TDS Number
Bank Account Opening Document Support
Domain, Website with hosting for 1 Year
Accounting setup in Zoho Books
You need to arrange very simple documents of directors like Photographs, Pan Card and One Address Proof.
ROC is a Government office with which companies get registered. Every State has one ROC office except Maharashtra and Tamilnadu where there are two ROC offices. In Maharashtra, companies are registered with Mumbai & Pune ROC. In Tamilnadu. companies are incorporated at Chennai and Coimbatore ROCs. In all other States like Delhi, there is only one ROC office, like in Bangalore, Hyderabad and so on.
No. We provide a complete online Company Incorporation process. All legal documentation and visits are done by us.
No. Once the company is formed, it will be valid till it is officially closed down by the owners. No renewal or fees is required. However, every year companies have to file very basic returns with the ROC office.
Director Identification Number (DIN) is a unique identification number required for a person to become a director of a company. DIN is issued by the ROC office (Ministry of Corporate Affairs)
It is similar to a PAN Card number.DIN is to be mentioned in documents while appointing a person as a director of a company.
A digital signature is an electronic signature, which is in the form of codes. It is used for signing the electronic forms, filed with ROC for incorporation of the Company. Digital Signatures cannot be used in physical documents.
A Company name is a very important part of the registration of the company. The company name is divided into 3 Parts:
1) Keyword (brand name like TATA or Flipkart) 2) Activity word (i.e. showing nature of business like Software) 3) Business Type word (i.e. Pvt. Ltd. or LLP). For the Incorporation of the company, the suggested name should not match with existing companies or Trademarks.
MOA means Memorandum Of Association and AOA means Articles Of Association. These are the bylaws or rules based on which important matters like the main business of the company or meetings are decided. These are standard legal documents prepared by Company Secretaries during the registration of the Company.
Yes, the company office address can be changed anytime after incorporation.
Capital means investment made by shareholders into the company. The Authorised capital is an amount up to which a company can issue shares. This capital is mentioned during the incorporation of the company based on which ROC registration fees and stamp duty is paid. Paid-up capital is an actual investment that goes from shareholders into the company's bank account, against which a share certificate is issued by the company.
No. After the company is registered, it needs to open a company bank account and then anytime within two months of incorporation, capital can be deposited into the Company bank account.
This is not true, a Public limited company is one of the modes of doing business, which means it can be started from scratch. For that matter, even after incorporating a Public limited, there is no obligation that the company must have sales or turnover.
There is no automatic applicability. Provident Fund (PF), Service Tax or VAT law applicability is the same for all types of businesses like a Sole Proprietorship, Partnership Firms and Companies. These laws are applicable only after crossing certain threshold limits.