Continuing on the series, today’s discussion will be on another business entity, that is public Limited Company.  A public limited company can be a wholly owned Indian company or a wholly owned subsidiary of a foreign company or a joint venture between a foreign and Indian company or a wholly owned foreign company.  A public limited company should have a minimum of two directors.  

Features of a public limited company:
• Public limited company to be registered with the Ministry of Company Affairs or Registrar of Companies.
• The company incorporated has to have a name approval.  If the name is available, the same shall be approved.
• This entity is treated as an artificial legal person in the eyes of law.  That means that it can act as an independent person.
• Separate legal entity.  The public limited company is an artificial juridical body established under Companies Act by Directors and Shareholders.  The company is an independent body where it can possess and buy properties, incur debts and spend.
• Perpetual succession.  Death, insanity, change in membership, bankruptcy etc will not impact the continuity.  It will continue to exist until a legally appropriate decision.
• Limited liability.  The liability of the shareholders is limited to the shares in the company.  However, directors extending personal guarantee additionally will have unlimited liability.
• Equity:  Shares are traded in stock market.
• They can issue fixed deposits.
• Owning assets:  The company can own and transfer any kind of assets.
*Registration of a public limited company procedure  *

Requisites
• Starts with identifying minimum three directors and 7 shareholders.
• A maximum of 50 directors can be on board.
• It can have unlimited shareholders.
• Minimum paid-up capital arequired Rs. 500,000.
• Objects of the company.
• Requirement of DSC.
• PAN card of the directors.
• Aadhar card of the directors.
• Address proof of the directors.
• Proposed authorised capital.  Number of shares and face value of each share.
• Proposed paid-up capital.  Number of shares allotted to each director for shareholders.

Procedure for company registration:
• Apply for name clearance.
• Apply for company registration with draft MOA (Memorandum of Association) and AOA (Articles of Association).
• Pay the prescribed fees.
• If there is no objection, then ROC will allot incorporation. If any objections,we  need to rectify for completing the process.

Public limited company can be converted to private limited company, OPC or LLP
Conclusions:  In a nutshell, a public limited company has preference in accessing loans and can list its shares in stock exchange.  Shareholders can transfer with great ease. Limited liability of directors and shareholders.  This makes it an ideal form of business for large business corporates.

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