Start a Public Limited Company
Setting up a new company as a public limited company has its own advantages. The primary motive of going with a Public Limited Company compared to a Private Limited Company is the option of allowing the share trading in the share market and allowing the public to invest money in your company.
The whole process comes in compliance with the Companies Act of 1956.
Steps to be Followed
The following steps are to be followed to start a Public Limited Company:
- First, a minimum capital of Rs.5 Lakhs is required as per the Amended Companies Act of 2000.
- To start a public limited company, three directors are required along with valid Director Identification Numbers for each.
- A public company needs to have a minimum of 7 members while its inception but there is no limit on the maximum number, which is left to your choice.
- Further, Form 1 has to be filled and submitted where the structure of the company, incorporation type, number of promoters etc are specified.
- If you wish to list the company in a Stock Exchange such as the BSE or the NSE, then the company also has to be listed and the registration forms of these also have to be filled.
- Once all the above formalities are done, the certificate of commencement is to be obtained under the Section 149 only after which the business operations can be commenced.
The above content must have given you some quick information about the process that is involved in the formation of a Public Limited Company.
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