Start your own Public Limited Company
Abhishek Bacchan in the movie Guru excitedly remarks that he will approach the public or the aam janta to give money when his friend inquires as to where they would get finances for their business.
Setting up a Public Limited Company is a dream of many an entrepreneur. ‘Going public’ really means setting up a private limited company!
The big business names in the country Tata, Ambani and Birla’s are examples of business families that used this concept of public limited company to raise capital.
One of the advantages of a public limited company is that it can trade shares on the stock market and leverage more capital.
This comes at the cost of compliances that need to be followed in accordance with the Companies Act, 1956.
We at jjassociatez will help you set up your very own public limited company!
Procedure for establishing a public limited company
1. Minimum paid up capital of Rs. 5 lakh is required as per the Companies (Amendment) Act, 2000.
2. Three directors are required and their director identification number (DIN).
3. Minimum seven members and there is no limit on the maximum.
4. File Form 1A with the proposed name for the company with the Registrar of Companies (ROC).
5. File Form 1 which deals with the incorporation of the company. It requires basic information about the type of the company, capital structure, number of promoters etc.
6. If a company wishes to be listed with a stock exchange, e.g., BSE or NSE, then the necessary compliance’s for the same.
7. A public limited company requires a certificate of commencement as discussed under Section 149 of the Companies Act to begin business unlike a private limited company.
Regulations for Public Limtied Company
A public limited company is subjected to more regulation under the Companies Act with the aim that when a company is using public money it should be accountable for the same.
The Memorandum of Association, Articles of Association, Register of Charge etc. needs to be maintained by a public company. But do not let the legal formalities scare you as the incorporation of such a company is not difficult.
The MCA website allows for e-filling and at jjassociatez we will assist you to the best of our abilities so that you can start your public limited company.
You can fill up the simple form on this page to learn more about starting your own public limited company.
Our team will send you an email instantly and follow that up with a 1-to-1 call, if required.