Your decision to begin your entrepreneurial journey starts with the decision of selecting the right business structure to follow with. CorpSeed Welcomes you to the world of business. We respect your idea and want to be a partner in your journey. A partner who can advise you to select the right options for your business structure and provide legal and Tech support
Let’s take you to one step more closure to know Public Limited Company incorporation process and its implication on the business structure.
A public limited company is the highest corporate structure to start with. Public limited business structure is great for the long run but has more stringent regulatory requirements.
Apart from all the advantages of a private limited company, Public limited company has the ability to have any number of members, ease in transfer of shareholding and more transparency.
A public company is a company that has sold all or a portion of itself to the public through an initial public offering (IPO), meaning shareholders have a claim to part of the company's asset and profits.
If you plan to proceed for an IPO now or at a later stage
Plan to get high financial exposure to source capital from public as Equity or debenture or deposit
Benefits & Liabilities of Public Limited Company
Benefits of a Public Limited Company
Shields personal assets from business liability, limits liabilities of Directors.
The Public Limited Company continues to exist even after the death of the Shareholder.
Unlimited financial exposure to source capital from public as Equity or debenture or deposit
High brand image, more transparent & credible compared to other business structures.
Easily transferability of ownership by just transferring shares.
Public Limited Company being an identity, can own, acquire and alienate, property in its name. Property owned could be anything like machinery, building, patents, intangible assets, land, residential property, factory etc.
With compliance, a public limited company can list its shares on the stock exchange.
Liabilities of Public Limited Company
A Public limited company must hold a board meeting annually
File annual returns with MCA (Ministry of Corporate Affairs)
Annual account audit by a CA is mandatory
Minimum 3 directors, Minimum 7 shareholders
Minimum 5 lakhs of share capital
Tax Liabilities of Public Limited Company
Public limited company is required to file annual return with the Income Tax Department
Annual account audit by a CA is mandatory
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Each company in India has to follow a set of compliances as set by different other regulatory bodies. The ‘Company Annual Compliance’ regimes need companies to gather their business information and update the regulatory bodies such as Ministry of Corporate Affair (MCA), Income Tax Department other regulatory bodies.
No, you need not to be present at our office or appear at any office for the incorporation of a Public Limited Company. All the documentation has been completed by us. In case of any communication during incorporation, we might use email to receive or send documents to you.
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