Public Limited Company Registration In Chennai
The rules and regulations of a Public Limited Company in Chennai are rigid as compared to the Private Limited Company. Still is it better to incorporate a Public Limited Company as it is an amalgamation of the benefits of a private limited company with easy features such as the transferability and the ownership of the shares?
Here are the advantages of registering as a Public Limited Company in Chennai
Separate Legal entity: A public limited company registered in Chennai is considered to be a separate legal entity from the shareholders. A limited company has existence and can have a PAN, bank account, approvals, contracts, license, and assets and liabilities.
Multiple avenues of funding: A public limited company registered in Chennai can raise funds from individuals as well as from financial institutions. These funds may be also raised in equity shareholding, preference shareholding, or debentures.
Easy transferability of shares: One of the biggest advantages of a public limited company is that the shares can be easily transferred by a shareholder to other legal entities - that can be an individual or an organization in India or abroad. The Director of the Company can also be changed for ensuring the business's perpetuity.
Limited Liability: The shareholders of a Public Limited Company that is registered in Chennai have limited liability protection. If in case of some unexpected liability the same would be limited only to the company and not affect the shareholders in any manner.
Growth opportunities: As the organization has a vast capital base the developments are huge, particularly in the event of an open constrained organization.
Management: An organization is controlled by the Board of Directors, this Board of Directors is elected by the investors.
Requirement for registering a Public Limited Company in Chennai
The various rules and the regulations that are prescribed under the Companies Act,2013 for the formation of a Public Limited Company in India. Here is a checklist one should know that while registering a Public Limited Company in Chennai.
- Minimum 7 shareholders are required to form a Public Limited Company in Chennai
- A minimum of 3 Directors is required to form a Public Limited Company.
- A Digital Signature Certificate of one of the Directors is needed.
- Self-attested copies of the address and identity proofs are needed
- Director Identification Number for the Director is necessary.
- Application is to be made for the selection of the Name of the Company.
- An application is to be made for the selection of the Name of the Company.
- An application that is consisting the main objectives of the company, the objectives clause will define the main objectives of a Company after the incorporation.
- The application is submitted to the Registrar of Companies along with the necessary documents like MOA and AOA. A duly file form DIR 12, Form INC 7, and Form INC 22 is needed.
- Payment of the registration fees that are prescribed by the ROC.
- Once the ROC has approved an application an application should be made for obtaining the business commencement certificate.