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 minimum 3 Directors, 7 Shareholders and Maximum 50 Directors and need 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 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 liabilities for its members and has rights to sell its shares for raising the capital of the company. It can be incorporated with a minimum number of three directors and has more stringent rules and regulations as compared to a Pvt.
- Limited Liability
- Given More Preference
- Transfer of Shares
- Listing in 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 people, who shall act as the company's 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 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 relevant authorities, then the applicant would go in for filing 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 which 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 as 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
Perpetual Existence
A company continues to exist irrespective of the status of the owners.
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Limited liability
A shareholder is liable only to the extent of unpaid amount on his holding.
Separate Legal Identity
A company enjoys 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
Public company can invite public to subscribe its shares unlike a private limited company.
No Restriction on share transfer
There is no restriction on transferability of shares. A shareholder can transfer his shares to any person.
Disadvantages
Loss of control
Control over the company’s affairs seizes to exist in few hands.
Strict legal formalities and compliances
Strict legal formalities and regulations are to be complied with by public limited companies.
Sharing of profits
Profits of the company are shared amongst many shareholders thereby decreasing each person’s share.
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Documents required for Public Limited Company Registration in Chennai
What is the process for
Incorporation of Public Ltd Co.?
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Applying DIN&DSC
DSC and DIN for all directors are required.Affidavit and declaration by first subscribers and Directors should be prepared
Name Approval
4-6 proposed names should be provided that should be unique and suggestive of company business.
Document Submission
Duly filled Application along with required documents should file with the RoC.
Company Registered
Once your Company is Incorporated. Incorporation Certificate will be issued
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