What are the advantages of a Public Limited Company?

More Capital

When you are selling shares to the public it means that anyone can invest in your company, so its greater source for value of funds.

Goodwill

As more attention is given to the public limited company as it is listed on an exchange which ensures mutual funds and other traders take note of your business. So it’s a great way to make your business a prominent name.

Growth and expansion opportunities

There is a perfect opportunity for the growth and expansion of the business.

What are the disadvantages of a Public Limited Company?

More Regulations

For a public limited company regulations are more stringent. Your company must have all the professionals.

Transparency

Public limited company is held accountable and more thoroughly scrutinized by auditors.

Control over shareholder

It’s much harder to control who is a shareholder of your company, so there’s a possibility of losing control of the direction of your business.

What is the registration process of a Public Limited Company?

Digital Signature Certificate (DSC) & DIN

For all the proposed Directors of the Company DSC and Director Identification Number (DIN) must be obtained.

Name Approval

Name approval has to be obtained from the Registrar of Companies [“RoC”] through submission of an application in Form No. – INC 1 and the applicant can give maximum six names in order of preference. The approved name by the authority is valid for sixty days. The Promoter /Subscriber to the MOA and AOA shall be the applicant for the availability of name application. The approved name by the authority is valid for 3 months. Name approval generally takes 1-2 business days.

Memorandum and Articles of Association

After having name approval, the draft Constitutional Documents of proposed Company i.e. Memorandum of Association and Articles of Association of the company is to be drafted and then it is filed with the Registrar of Company along with the forms and other necessary documents stated below.

Subscription Pages of MOA & AOA

MOA & AOA shall be signed by each subscriber to the memorandum of the company who shall provide details of his name, address, description and occupation, if any, in the presence of at least one witness who shall attest the signature and shall likewise sign and add his name, address, details of occupation etc. The witness shall be a practicing professional i.e. practicing CS, Practicing Cost & Management Accountant, or practicing CA. MOA & AOA shall be signed by each subscriber to the memorandum of the company who shall provide details of his name, address, description and occupation, if any, in the presence of at least one witness who shall attest the signature and shall likewise sign and add his name, address, details of occupation etc. The witness shall be a practicing professional i.e. practicing CS, Practicing Cost & Management Accountant, or practicing CA.

Filing on MCA Portal

Next step is to file forms available on the MCA Portal with the Registrar of Companies.

Certificate of Incorporation

After all the clarifications, the Registrar of Companies will issue a certificate of Incorporation with the unique Company identification Number.

To open Bank Account

After incorporation, a bank account in the name of incorporated company shall be opened and the subscribers of Memorandum and AOA of company shall deposit subscription money in that bank account.