According to the rules and regulations of the Companies Act 2003, a Public Company is benefited with few restricted liabilities for its related members and has the authority to sell off the shares for increment of capital of the respective company. The basic requirement for the establishment is of three directors only and has more standard rules and regulations in contrast with a Private Limited Company. The further incorporation rule is of having a minimum number of seven members, though there is no restriction for the maximum number of individuals. It offers all the rights of a Private Limited Company alongside more clarity and simple adaptability of proprietorship and shareholding. Any Public Limited Company can be distinguished from Private Limited Company by its name, number of shares, name and profile of the members, directors, managements and so forth. 

Any company or firm is required to have incorporation application with all the following documents:

    • Identity proof like PAN card, Aadhar card, Voter Id, Driving License of all the shareholders and managing directors of the company. 

    • Address proof of all the board of directors and shareholders. 

    • PAN card details of the proposed directors and shareholders. 

    • No Objection Certificate or NOC signed by the landlord of the business place, if any. 

    • As a residential proof of the business place, invoices of essentials like gas, water, telephone or electricity bill of the registered workplace. It must be of not more than 2 months. 

    • Digital Signature Certificate or DSC of the designated panels of directors. 

    • Article of Association (AOA) or Memorandum of Association (MOA). 

Public Limited Companies have some important features that need to be specified before registration. Given below are some points:

    • Title of the company- Every Public Limited Company must include the word "Limited" at the end of their brand name. It is signified as an identity of a Public Company. 

    • The Company's Board of Directors- According to the Companies Act 2003, a Public Company must have a minimum number of three directors to consolidate the company or firm, although there is no limitation on the maximum number of directors that can be appointed later on. 

    • Prospectus of the Company- It is obligatory for the companies to have a prospectus. It is made available by the proposed company for its general population. It contains thorough explanations of work, mannerisms and related affairs of the company. Private Companies, on the other hand, are exempted from such compliances because they do not have the right to include general people in their shareholding portions. 

    • Invested Capital- The prerequisites of the act stipulates that there is no minimum or maximum capital required for enlistment. 

There are numerous benefits provided to the Public Limited registered company. Some of the most advantageous are given below-

    • Some Restricted Liabilities for the Shareholders of the Company- Investors of the Public Companies are benefited of restricted liabilities under which their resources are protected and can't be utilized to get the debts, obligations and losses free from the company. Regardless, the shareholders are answerable for their own legitimate offenses. These rights are enjoyed by all members of the board of directors, shareholders and other members that their assets cannot be seized by any creditors, banks or government entities.

    • Interminable Succession- A Public Limited Company that has interminable succession is considered to be as a corporate body. Hence, the company will proceed with its existence even if one or more than one member, shareholder or director die, retire, get ill or become bankrupt.

    • Improvising the Capital of the Company- Public Limited Companies offer the general public to purchase the shares of their company unlike Private Limited Companies. As a result, anyone can make an investment in a Public Company that eventually increases its capital.

    • Getting Financed- A Public Company has access to an endless number of financing options. It has all the rights to include the general public by selling the shares of the company and issuing equity and debentures. Furthermore, most financial organisations invest more reliably in Public Companies rather than any unregistered company.

    • Increased credibility- The Public Companies can sell off the shares as per the fluctuations of the market. Thus, there is negligible chance to get trapped in the unsystematic risks of the market.

    • Exploration and Expansion of the Company- Public Companies are more trustworthy for financiers and the general public, so it can easily get extended by putting resources into new ventures from the assets raised by selling its shares in the market. 

    • Strengthen Growth Opportunity- As there is a lesser chance for sudden risk occurring situation, the credibility increases leading to faster growth opportunity. 

There are many differences between the Public Limited Company and Private Limited Company in every aspect. The significant differences are stated below-

    • Number of Directors- In Public Limited Company, minimum number of 3 directors are required initially and in Private Limited Company minimum numbers of 2 directors are required, although there is no binding limit for maximum number of directors. 

    • Number of Members- In Public Limited Company, minimum number of 7 members are required having no upper limits whereas in Private Limited Company, minimum numbers of 2 members and maximum 200 members can be there. 

    • Invitation for Public- There is no scope for public invitation in Private Limited Company. In Public Limited Company, the general public are invited to invest and become shareholders. 

    • Prospectus Insurance- In Public Limited Company, insurance of prospectus is necessary where in Private Limited Company, it isn't required. 

    • Differences in Names-  Public Limited Companies should have “Limited” at the end of its brand name and Private Limited Company must have "PVT LTD" towards the end of its name. 

    • Statutory Meeting- Statutory Meeting is mandatory in Public Limited Company but not essentially required in Private Limited Company. 

    • Exchange of Stocks- The stocks of a Public Limited Companies are listed on stock trade and stock exchange for the people to transact where stocks of Private Limited Company are neither listed on stock exchange nor carry out stock trade. 

    • Remunerations- There is no restriction in managerial remunerations of Public Limited Company but in Private Limited Company, it must not exceed the limit of 11% of the net profit. 

There are several procedures to be followed to get registered as a Public Limited Company. The following steps are the sequence for registration-

Step- 1

Application for Digital Signature Certificate - Firstly, one needs to apply for the Digital Signature Certificate or DSC for each and every member of the board of directors in the company. DSC is utilized to sign the e-forms and is considered to be a legal and reliable strategy to record all the documents in electronic way. DSC is a legally binding document.

It is easier for the directors to get DSC from CAs or any Certifying Authorities with self-attested copies of their identity proof. Approximately, 1- 3 working days are required to acquire a DSC.

Step- 2

Verification of the Name - Registration of the name of the company is essential. One can check the availability of the desired name through the MCA portal following the below given steps:

Visit the portal of MCA. Then, choose the MCA Services. Finally, click on Check Company Name. The company name should be unique and not be taken or registered already. 

Step- 3

SPICe+ Form Fillup - After the finalization of the name of the company, incorporation certificate is required. The next step is to fill the SPICe+ form for it and along with that AOA (Article of Association) and MOA (Memorandum of Association) documents are also necessary. Both of these documents must contain objectives, mission, aim, vision, responsibility and activities of the entire members and panel of directors and shareholders and brochure of the company or firm as well. The higher officials verify all the applications and documents which requires around 7 to 9 working days. 

Step- 4

Obtaining Incorporation Certificate- The company will obtain the Incorporation Certificate with date of Incorporation and CIN when all the applications and documents are verified and received from the respective authority. 

There are several procedures to be followed to get registered as a Public Limited Company. The following steps are the sequence for registration-

Step- 1

Application for Digital Signature Certificate - Firstly, one needs to apply for the Digital Signature Certificate or DSC for each and every member of the board of directors in the company. DSC is utilized to sign the e-forms and is considered to be a legal and reliable strategy to record all the documents in electronic way. DSC is a legally binding document.

It is easier for the directors to get DSC from CAs or any Certifying Authorities with self-attested copies of their identity proof. Approximately, 1- 3 working days are required to acquire a DSC.

Step- 2

Verification of the Name - Registration of the name of the company is essential. One can check the availability of the desired name through the MCA portal following the below given steps:

Visit the portal of MCA. Then, choose the MCA Services. Finally, click on Check Company Name. The company name should be unique and not be taken or registered already. 

Step- 3

SPICe+ Form Fillup - After the finalization of the name of the company, incorporation certificate is required. The next step is to fill the SPICe+ form for it and along with that AOA (Article of Association) and MOA (Memorandum of Association) documents are also necessary. Both of these documents must contain objectives, mission, aim, vision, responsibility and activities of the entire members and panel of directors and shareholders and brochure of the company or firm as well. The higher officials verify all the applications and documents which requires around 7 to 9 working days. 

Step- 4

Obtaining Incorporation Certificate- The company will obtain the Incorporation Certificate with date of Incorporation and CIN when all the applications and documents are verified and received from the respective authority.