Private Limited Company, the most preferred business type in our country is a powerful business vehicle for entrepreneurs. When a company grows it may need funds, and there is no better way of creating a pool of resources than the Public Limited Company. A Public Limited Company is the only form of business that is allowed to raise funds from the public. Comparatively more number of compliances are required for this form of business as the funds are being raised from public.

The public limited company can decide to get more funds by listing itself in stock exchange as small, medium or large cap industries. A stock exchange listing adds to the amount of liquidity for the company shareholders by making the company shares freely transferable.


Better Access to Capital from existing & new Investors.

More liquidity as shareholders can buy & sell the shares.


Director is an appointed or elected member of the board of directors of a company, who, with other directors, has the responsibility for determining and implementing company’s policies. Directors act on the basis of resolutions made in directors’ meetings. Directors derive their powers from the corporate legislations and the company’s articles of association. The Duties and responsibilities for directors are prescribed under the Companies Act 2013.

A Public limited company is a company limited by shares which means the liability of the member is limited to the face value of shares that the shareholder holds. There is no restriction on the maximum number of shareholders in this form of business. The minimum number of promoters is 7 shareholders and the minimum number of directors is 3. A minimum share capital of INR 5, 00,000 is required. The decision making in the company is vested in the Board of Directors, and all policy decisions are taken at the Board level.

Digital Signature Certificate (DSC) is a secured electronic format of signature which is used for signing electronic & online documents, forms for e-tenders, ROC requirements, IT & PF returns, etc.

DIN stands for Director Identification Number which is unique and is issued on request of the ROC to every person who intends to become a director. DIN is mandatory for a person to be appointed as Director.

A Charter document that regulates a company’s external activities. The memorandum of association is drafted with the information relating to the company’s name, names of all members (shareholders) and number of shares held by them, and location of its registered office. It also states the company’s
(1) Objectives,
(2) Amount of authorized share capital
(3) Whether liability of its members is limited by shares or by guaranty, and
(4) What type of contracts the company is allowed to enter into.
A Company cannot do any act which is beyond the Memorandum of Association.

The Articles of Association is a well-defined and clearly recorded document that defines duties and responsibilities of its Directors. The Directors shall function according to the Rights entrusted with them as per the AOA, and cannot carry out any activity beyond the AOA.

A signed statement by the Registrar of Companies declaring that a company is duly incorporated under the respective statutes. It is an exclusive evidence that the company has been formally incorporated and complying with all the procedures prescribed under the act.

A minimum of three directors and seven Members are required in a public limited company. The decision making in a company is vested in the Board of Directors, and all policy decisions are taken at the Board level.

A Private Limited company can always scale up to a public Limited company.

Here is the list of prescribed minimum authorized share capital amount for use of certain words in the name (Amount in INR):
5 lakhs – For the words Hindustan, India, Bharat within the name (with or without bracket).
10 lakhs – For the words Enterprise, Products, Business and Manufacturing
50 lakhs – For the words International, Global, Universal, Continental, Intercontinental, Asiatic, Asia used within the name (with or without bracket).
50 lakhs – Hindustan, India, Bharat, being the first word of the name
1 crore – International, Global, Universal, Continental, Intercontinental, Asiatic, Asia as first word, and the word Industry and Udhyog anywhere in the name.
5 crore — Using the word ‘Corporation’ anywhere in the name.

A minimum of Three Directors and Seven Members are required to set up a public limited company and has more compliances to abide with compared to private limited company. Raising share capital from existing & new Investors is easy for a public limited company.

Normally, Investments in India are governed by the Foreign Direct Investment (FDI) policy and FEMA Regulations. NRI’s must always choose to start or invest on Public Limited Company, where FDI is allowed under automatic route only for these companies.

Absolutely you can avail our services from anywhere within/outside India. As most of the procedural aspects are Online, the experienced team at Numbro will guide in all the procedural aspects of getting the company Registered.

Every Public company shall file its Annual Return, Financial Statements, Directors Report along with the ROC on Annual Basis. It must also prepare a Board & Annual General meetings Documentation on periodical basis as prescribed under the Act.

Income Tax: a Public Limited Company has to pay an advance tax on quarterly basis if the tax liability payable during the year is more than INR 10,000 and has to file income tax return on a yearly basis.
Goods & Services Tax (G.S.T): If the Public Limited Company taxable turnover exceeds

Rs.20, 00,000 it is liable to be registered under G.S.T and compliances applicable to GST Act have to be complied with.

Numbro made sure that we were ready to tackle any compliance issue during the operation of our business & went an extra mile.

Dinakar C
CEO, Staffing and Consulting Company
how can we help you?

You can personally consult us at Numbro Consulting-Hyderabad or submit a business enquiry online.We will repond.

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