A Public limited company is a voluntary association of members which is incorporated and, therefore has a separate legal existence and the liability of whose members is limited.A minimum of three Directors are required for establishing a Public Limited Company and it has more stringent regulatory requirements compared to a Private Limited Company.
A limited company grants limited liability to its owners and management. Being a public company allows a firm to sell shares to investors this is beneficial in raising capital. A minimum of three Directors are required for establishing a Public Limited Company and it has more stringent regulatory requirements compared to a Private Limited Company.
Document Required for Public Limited Company
Normally it takes 8-15 Days in registration of a company, however it is a legal process and committing a fixed time line is not practical, Startups are advised to plan in advance before the launch date of their startup.
There is no restriction of maximum number of sharehplder in a Public Ltd Company
Yes, an NRI or Foreign National can also be a shareholder or director in a public limited company of India. For becoming a director, besides the basic requirement of being a sensible adult, such a person must possess the DIN issued by MCA.
As a Public limited company deals with public money, it has to make rather heavy compliances strictly, which are bulkier than those performed by a private limited company. Apart from the regular compliances related with income tax, there are many periodic and annual compliances to be made by a public limited company with ROC/MCA, SEBI, RBI, etc. These regulatory liabilities are in addition to securing and promoting steadily the profits and welfare of all shareholders of the public limited company.
A Public Limited Company must have a minimum of three Directors and seven shareholders.