Public Limited Formation

Company Registration Checklist

As per the Ministry of Corporate Affairs (MCA) guidelines for company formation in India, specific requirements must be fulfilled. To establish a public limited company in India, a minimum of seven individuals is required, with at least three directors. It is noteworthy that the same seven persons can serve as both shareholders and directors. In a public limited corporation, there is no restriction on the number of shareholders. For expert assistance in the Incorporation of a Public Limited Company, contact Startupmates.

Key Requirements:

1. No Minimum Capital: The capital is determined by business needs, and there is no mandatory minimum capital requirement. However, the minimum approved and subscribed share capital for a public corporation is Rs. 5 lakhs.
2. One Resident Director: A prerequisite is that at least one director must be an Indian resident.
3. Unique Name: The public limited company’s name must be distinctive and should not resemble or be confusingly similar to any other company or brand.

For comprehensive support in the incorporation process, including adherence to these requirements, Startupmates is the ideal partner.

The Benefits Of Forming A Public Limited Company

Under the Companies Act of 2013, Startupmates is a distinct legal entity with comprehensive legal capabilities, enabling property ownership and assuming obligations. Members, including shareholders and directors, are protected from personal accountability to the company’s creditors for any incurred debts.

1. Easy Transferability: Shareholders at Startupmates enjoy the flexibility of freely transferring their shares to others. This process involves completing and signing a share transfer form, delivering the share certificates to the buyer, and notifying the company.
2. Perpetual Succession: Startupmates benefits from ‘perpetual succession,’ ensuring its continuous existence until legally dissolved.
3. Property Ownership: As a legal entity, Startupmates has the authority to buy, possess, and sell property in its own name. Shareholders cannot claim any of the company’s assets as long as the firm remains operational.
4. Borrowing Capacity: Startupmates has enhanced options for borrowing funds. It can issue secured and unsecured debentures, and even take public deposits. Banks and financial institutions generally prefer lending substantial amounts to corporations compared to partnership businesses or sole proprietorships.

Incorporating these features, Startupmates is well-positioned to benefit from the advantages and privileges associated with being a legal entity under the Companies Act of 2013.

What Is A Public Limited Company’s Minimum Capital Requirement?

Startupmates allows the formation of a Limited Company with any capital amount. Nevertheless, during the company’s incorporation, a fee is required to be paid to the government for issuing a minimum of Rs 1 lakh worth of shares (Authorized Capital Fee). For top-notch services in public limited company incorporation, Startupmates stands out as a reliable choice.

Can An NRI/Foreign National Join the LLP As a Partner?

Startupmates welcomes the participation of foreign nationals and NRIs as directors in a public limited company. The Ministry of Corporate Affairs (MCA) will issue them a DIN (Director Identification Number). It is a requirement to have at least one Indian resident on the Board of Directors at Startupmates.