Forming a Public Limited Company is a great business decision for large-scale businesses. The minimum membership requirement is of 7 members with no limit on the maximum number of members and/or shareholders for incorporating a Public Limited Company. However, only some Public Limited Companies list with one or many stock exchanges to raise capital from the general audience. Even a Private Company can list its debt instruments on stock exchanges. Due to its structuring, Public Limited Companies are required to adhere to multiple regulations of the government. Accordingly, starting a public limited company can be a cumbersome process, and might need expert assistance. With CA Plus, your company incorporation can be completed swiftly without much to be worried about as long as you provide to us with all the necessary documents while meeting the requirements set by the government to incorporate a public limited company. Get in touch with us today to begin your public limited company formation!
There are various types of entities recognized under the Indian Law
Private Limited Company:
Public Company,
Sole Proprietorship
One Person Company, Partnership
Limited Liability Partnership (LLP)
Non Government Organization (NGO)
Limited Company
Section-8 Company
Nidhi Company
Producer Company
The following are the major advantages of incorporating a limited company in India versus other entity types.
Limited liability: This is the biggest advantage of being a limited company. As we mentioned above, a limited company is a separate legal entity from its owners. This means that the shareholders’ personal assets are protected in the event that the company is sued or goes bankrupt. This is very important because it means that the shareholders will not lose their homes or savings if the business fails.
Increased credibility: Being a limited company also gives your business a boost in terms of credibility. This is because potential customers and suppliers will see you as a more professional and established business
Tax advantages: There are a number of tax advantages that come with being a limited company. For example, you can claim tax relief on your business expenses and you may be eligible for lower corporation tax rates. Likewise, if you pay yourself a salary out of your company’s profits, you will only have to pay income tax and National Insurance on that salary.
2 Directors – 1 Person should be an Indian National and Indian Resident
2 Shareholders – The Directors can be shareholders
Registered Office in India
Proper and eligible Name (Name Approval Guidelines)
Registered Office Address & NOC from Owner
Requirement of Capital (Authorized Capital Vs Paid-up Capital)
Documentation for company registration.
The Sole Proprietorship requires opening a bank account in the name of the business, a Certificate of Registration under the Shop and Establishment Act of the respective state and GST Registration The following are the steps involved in registering a company in India:
RUN Name Approval
Digital Signature for Directors
Incorporation Application Submission
Description of the goods or services
| Passport / Driver’s License / Election ID / Ration Card / Aadhaar ID |
| PAN Card |
| Address proof of the company |
| Bank Account for Private Limited Company |
| Bank Statement / Electricity Bill / Phone Bill |
| NOC from landlord |
1. How to Register a Company in India?
Digital Signature Certificate (DSC) Step 2: Director Identification Number (DIN) Step 3: Registration on the MCA Portal. Step 4: Certificate of Incorporation.
2. Are two directors necessary for registration of company?
Yes, a minimum of two directors are needed for a private limited company. The maximum members can be 200. You can register as a one person company, if you are the sole owner of the company.
3. Is it necessary to have a company’s books audited?
Yes, a private limited company must hire an auditor, no matter what its revenues. In fact, an auditor must be appointed within 30 days of incorporation. Compliance is important with a private limited company, given that penalties for non-compliance can run into lakhs of rupees and even lead to the blacklisting of directors.
4. What is the minimum capital needed to do company incorporation?
There is no minimum capital required for starting a private limited company.
5. Does one have to be present in person for Company Incorporation?
The entire procedure is done online and one does not have to be present at our office or any other place for the incorporation. A scanned copy of the documents has to be sent via mail. They get the company incorporation certificate from the MCA via courier at the business address.
