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The ability to raise shares is the most beneficial factor of a public limited company. Especially, if it is listed on a recognized stock exchange market, it has the ability to attract investors from hedge funds, mutual funds etc. The amount of capital that can be raised is much greater than a private limited company.
When the company goes public, it gets listed in the stock exchange and hence automatically more people get to know about and its functions, hence the increased brand recognition will bring more business.
The liability of each shareholder or member is limited. This characteristic remains intact with this conversion. Their liability is limited to the extent of their shareholding. The individual or personal assets of shareholders or members are not at risk.
Shares in a public limited company are easily transferable as compared to the private limited company. The shareholders can sell the shares and benefit from its liquidity. This acts as an incentive for people to invest as they are not bound to remain with the company forever.
Copy of PAN Card of Directors
Passport size photograph of Directors
Copy of Aadhaar Card/ Voter identity card
Copy of Rent agreement(If rented property)
Electricity/ Water bill (Business Place)
Copy of Property papers (If owned property)
Landlord NOC (Format will be provided)
The primary requirement to incorporate a public limited company is that it requires minimum 7 shareholders and 3 directors. The minimum Authorised Capital of the company is prescribed to Rs. 5 Lakhs instead of Rs. 1 Lakh in case of Private Company.
The suffix “Private Limited” will be replaced with “Limited.” For this change, the company has to seek permission from the shareholders and after that make the required changes in the MOA to get it amended.
Since the Public limited company deals with the public’s money, it requires taking measures which increase the statutory compliance on its part. The regulatory liabilities are not restricted to the income tax but with ROC/MCA, SEBI, RBI, etc. It is important to take extra measures as the stakes are pretty high than any other company.
Once the name approval letter is received from the ROC, the MOA and AOA are required to be drafted. The name clause and capital clause are altered along with the removal of restriction to Private Company as provided by definition.
The company can start its business operations as a Public Company on receipt of the fresh Certificate of Incorporation from ROC.
No. As the company’s PAN details remain same, there is no need of new registration. However, application of modification must be made for name change in records.
Regd Office: Dwarka Sector -30, New Delhi-110075 (DELHI)
Corporate Office: Shaheen Bagh, Kalindikunj Road, New Delhi-110025 (DELHI)
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