Public Limited Company Registration in Chennai
A public limited company is the legal status of any firm which has offered shares to members of the general public and in turn owns a limited amount of its own shares. Public limited firms are also known as publicly held companies.
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Public Limited Company Registration in Chennai – An Overview
Public Limited Companies are companies whose shares are traded in the stock market or issue fixed deposits. For Public Limited Company Registration, the company must have a minimum of 3 Directors, 7 Shareholders, and a Maximum of 50 Directors and needs Rs 5 Lakhs of Paid up Capital. Company profits are distributed in accordance with the provisions set out in the articles of association. Limited by shares companies are set up by profit-making businesses, which means that surplus income is normally paid to shareholders in the form of dividends.
A public limited company can raise more money by being a PLC than by any other corporate structure. This extra capital allows the business to expand into new markets, innovate new products, and achieve rapid growth. The application for a public limited company is filed online, and it is mandatorily required to be signed by the director and shareholder of the company.
Benefits of Public Limited Company Registration in Chennai
A public Company enjoys the benefits of limited liability for its members and has the right to sell its shares to raise capital for the company. It can be incorporated with a minimum of three directors and has more stringent rules and regulations as compared to a private company.
- Limited Liability
- Given More Preference
- Transfer of Shares
- Listing on the Recognised Stock Exchange
- Perpetual Succession
- Improved Capital
- Fewer Risks
How to Register a Public Limited Company in Chennai
For Public Limited Company Registration in Chennai, a company must have at least seven shareholders. Besides, there is no maximum limit on the total number of shareholders; a PLC can’t exceed the limit of 15 Directors.
Filing the Form
The application form for public limited company registration must be completed online. This must be done through the respective MCA portal. Along with this, all documents have to be submitted.
Applying for DSC and DIN
In the next step, the applicant must apply for a Digital Signature Certificate and a Director Identification Number. The digital signature certificate would provide authenticity for processing electronic documents. Apart from this, the DSC also helps in carrying out electronic signatures as per the requirements of the act. Applying for a DIN will allow the company to recruit a minimum number of directors to carry out the requirements of a public limited company.
Verifying the Name of the Company
In this step, the name of the company is checked and verified as per the requirements of the Ministry of Corporate Affairs (MCA). The name of the company must not be similar to any other name. Apart from this, the name of the company must not breach any provisions related to intellectual property law in India.
Filing SPICe Form
When the name of the public limited company is approved by the relevant authorities, then the applicant would go in for filing the SPICe form for securing the certificate of Incorporation. When the SPICe form is filed by the applicant, the DIN number would also be allocated to the directors of the company.
Submitting Documents
Once the above steps are carried out, the applicant must submit all the documents to the MCA. The documents that have to be filed with the authorities will include the memorandum of association and articles of association. Along with this, the company has to submit collateral documentation such as the mission, goals, objectives, and long-term aspirations of the company.
Incorporating the Company
After verifying the process, the MCA and Registrar of Companies will issue the certificate of incorporation of the public limited company. This certificate is a legal document to prove the status of the public limited company.
Opening a Bank Account
In the final step, a bank account has to be opened in the name of the public limited company. This must be open to carry out day-to-day transactions on behalf of the organisation. This bank account must be differentiated from opening an individual bank account.
Advantages of a Public Limited Company
Perpetual Existence: A company continues to exist irrespective of the status of the owners.
Limited liability: A shareholder is liable only to the extent of the unpaid amount on his holding.
Separate Legal Identity: A company enjoys a separate legal identity, unlike partnership firms.
Greater borrowing power: Companies have better avenues for borrowing funds, unlike other forms of business.
Access to public funds: A Public company can invite the public to subscribe to its shares, unlike a private limited company.
No Restriction on share transfer: There is no restriction on the transferability of shares. A shareholder can transfer their shares to any person.
Disadvantages of a Public Limited Company
Loss of control: Control over the company’s affairs ceases to exist in a few hands.
Strict legal formalities and compliances: Public limited companies must comply with strict legal formalities and regulations.
Sharing of profits: Profits of the company are shared amongst many shareholders, thereby decreasing each person’s share.
Documents required for Public Limited Company Registration in Chennai
- Proof of identity of all the shareholders and directors.
- Proof of address of all the directors and the shareholders.
- PAN number of all the shareholders and directors
- PAN number of all the shareholders and directors
- A NOC (No Objection Certificate) from the landlord where the office of the Company will be situated.
- Director Identification Number (DIN) of all the directors.
- Digital Signature Certificate (DSC) of the directors
- Memorandum of Association (MOA).
- Articles of association (AOA)
What is the process for Incorporation of a Public Limited Company?
Applying DIN & DSC
DSC and DIN for all directors are required. An affidavit and declaration by the first subscribers and Directors should be prepared
Name Approval
4-6 proposed names should be provided that are unique and suggestive of the company’s business.
Document Submission
A duly filled Application along with the required documents should be filed with the RoC.
Company Registered
Once your company is incorporated, an Incorporation Certificate will be issued.
FAQ's
How many person are required to incorporate a public ltd company?
A public limited company is required to have minimum 7sharehodlers.
What are the documents required to start a partnership firm?
ID proof, Residence proof and PAN card of all the partners along with a Partnership deed signed by all the partners.
What are the advantages of a registered partnership firm?
Only a registered Partnership firm can file a suit in any court against the firm or other partners for the enforcement of any right arising from a contract or right conferred by the Partnership Act. A Registered Partnership firm can claim a set off or other proceedings in a dispute with a third party.
What is a partnership deed?
A partnership deed is a written agreement entered into by all the partners of the firm which specifies the terms under which partnership is to be carried on.
Is audit required for partnership?
Tax audit under Income Tax Act is required for only few assessees.
What is the capital required to start a partnership?
There is no minimum capital required to start a partnership firm. A partnership firm can be started with any amount of capital.
How to open a bank account for partnership?
To open a bank account for a Partnership firm, a registered Partnership deed along with identity and address proof of the Partners should be provided.
How can I transfer my partnership?
Yes. A sole proprietorship concern can be converted into LLP or Company by following procedures laid down in respective Acts.