Public Limited Company

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We are a distinguished organization engaged in providing complete solution for setting up a Public Limited Company. The company defined under section 3(1) (IV) of the Companies Act, 1956 is termed as a Public Company. As per the Companies (Amendment) Act, 2000 effective from 13th December 2000, deemed Public Limited Companies need to intimate the Registrar to revert their original status as a Private Limited Company.

A Public Limited Company is:

• Not a private company
• Has a minimum paid-up capital of Rs. 5 Lakhs or such higher capital as may be prescribed
• Private company but subsidiary of a public company

Certain private companies are deemed to be public companies by virtue of section 43 A, due to the following:

• When 25% or more of its paid-up share capital is held by one or more body corporate
• When its average annual turnover (during the last 3 years) exceeds Rs. 25 crores
• When it holds 25% or more of the paid up share capital of public company
• When it accepts or renews deposits from the public after making an invitation by an advertisement

For setting up a Public Limited Company, following steps of procedure must be followed:

• Selection of the type of company: Depending upon the purposes for which the company is incorporated, proposed scale of operations and capital involved
• Selection of name: Six names are required to be selected in order of preference after taking notes of numerous provisions, clarifications, circulars and rules made by the Ministry of Corporate Affairs
• Applying for ascertaining the availability of the selected name
• Approval of the name
• Requirement for having DIN: Requirement for having digital signatures
  Preparation of the Memorandum of Association (MOA) and Articles of Association (AOA): These two documents are basically the charter & internal rules and regulations of the companies. Therefore, they must be drafted with utmost care under expert guidance and the other object clause should be drafted in a very broader sense