FAQs about Public Limited Company Registration in India
1. What is a Public Limited Company?
A Public Limited Company is a business entity in India that is allowed to raise capital from the public through the sale of shares. This type of company has a minimum of seven shareholders and is managed in accordance with the Companies Act 2013.
2. What are the advantages of registering as a Public Limited Company?
One of the major advantages of registering as a Public Limited Company is the ability to raise funds from the general public through the sale of shares. This allows for greater capital expansion and growth opportunities. Additionally, a public limited company has increased credibility and transparency, which can build trust among potential investors, customers, and partners.
3. Is there any minimum capital requirement for registering a Public Limited Company?
Yes, according to Indian law, a Public Limited Company must have a minimum authorized capital of Rs. 5 lakhs. However, there is no requirement for the company to have paid-up capital during the registration process.
4. How many directors are required for a Public Limited Company?
A Public Limited Company must have a minimum of three directors. Out of these directors, at least one director must be a resident of India.
5. What is the process for registering a Public Limited Company?
The registration process for a Public Limited Company involves various steps. It includes selecting a unique company name, preparing the necessary documents, submitting an application to the Registrar of Companies (ROC), and obtaining a Certificate of Incorporation. It is advisable to seek professional help or consult with a company registration expert to ensure a smooth and hassle-free registration process.
6. How long does it take to register a Public Limited Company in India?
The registration process for a Public Limited Company typically takes around 15-30 days, depending on the efficiency of document preparation and submission.
7. Are there any specific compliance requirements for Public Limited Companies after registration?
Yes, Public Limited Companies must comply with various post-registration requirements. These include maintaining proper books of accounts, filing regular annual returns, conducting annual general meetings (AGMs), appointing an auditor, and adhering to the guidelines issued by regulatory authorities such as the Securities and Exchange Board of India (SEBI) and the Ministry of Corporate Affairs (MCA).
8. Can a Public Limited Company be converted into a Private Limited Company?
Yes, it is possible to convert a Public Limited Company into a Private Limited Company. However, certain conditions and legal procedures need to be followed. The conversion process involves obtaining approval from the shareholders and the National Company Law Tribunal (NCLT), as well as making necessary amendments to the company's constitution and documents.
9. What are the tax implications of a Public Limited Company?
A Public Limited Company is subject to corporate income tax as per the prevailing rates. Additionally, dividend distribution tax (DDT) is applicable on dividends paid to shareholders.
10. Where can I seek guidance and assistance for Public Limited Company registration?
To ensure a smooth and hassle-free registration process for a Public Limited Company in India, it is advisable to seek professional assistance from company registration experts, legal consultants, or chartered accountants who specialize in company formation and compliance. These professionals can guide you through the entire process and help you meet all the necessary legal requirements and obligations.