Public Company is a company incorporated under the Companies act, 2013 having separate legal entity, perpetual succession and can sue and be sued by its own name.
Minimum Requirement for Public Company:A minimum number of three Directors who are adults.
One of the Directors of a Public Company has to be an Indian Citizen and Indian Resident.
The other director(s) can be a Foreign National.
It is also required to have seven shareholders of a company.
The shareholders can be natural persons or an artificial legal entity.
A Public Company is a company having separate legal entity and it may own property on its own name and can sue and be sued through its own name.
The liability of each member or shareholders is limited to the contribution made by them.
A Public Company separates Management and Ownership and thus, managers and directors are responsible for the company’s success and are also answerable for the company’s loss.
Public Company can raise funds through issue of shares on Private placement basis and through Public issue, and the organization itself provides a number of ways to raise funds in the form of private equity, ESOP, and more.
Since a Company is a separate Legal entity, in the eyes of law the company keeps on existing even in the case of death, insolvency or bankruptcy of any of its members.
Shares of public company are freely transferable without any restrictions
Permanent Account Number (PAN) Card
Aadhaar Card / Passport / Driving License / Voter Identity Card
Address ProofTelephone Bill / Mobile Bill
Electricity Bill / Water Bill
Bank Statement /Bank Passbook with latest transaction
*(Any one of the Document not older than 2 months)
Passport size PhotographsNotes:
All the Copies of documents must be Self-Attested by the applicant.
Telephone Bill / Mobile Bill/Electricity Bill / Bank Account Statement must be in the name of applicant and should not be older than 2 months.
In case of NRI or Foreign National, documents of director (s) must be apostilled.
No-Objection letter from the Owner of Address to use the address of the registered office of the Company.
Address Proof – In the name of the Owner:
Electricity Bill, Telephone Bill (Fixed Line Only), Gas Bill or Water Bill
(Not older than 2 months);- To be signed by the of the Owner of Premises.
Rent Agreement (if rented)
Select a suitable package.
Provide basic details & documents required for Incorporation.
Make Payment through Secured Payment Gateway
RegistrationApplication for DSC.
Application for Name approval
Drafting of documents (MOA, AOA, DIR-2,etc)
Registered on MCA*Issuance of COI, PAN, TAN by MCA.
*Company will be registered with 10-12 working days subject to the MCA processing and approval.
Provide basic details & documents required for registration.
Application for DSCs.
Name approval application through Spice part A.
Day 4:Drafting of Documents
Day 5-8:Filing company registration application through Spice Part-B
Day 9-12:MCA processing time
Issuance of PAN, TAN, COI
| Particulars | Sole Proprietorship | Partnership Firm | Private Company | Public Company | Limited Liability Partnership | One Person Company |
|---|---|---|---|---|---|---|
| Act | No specified Act | Indian Partnership Act, 1932 | Companies Act, 2013 | Companies Act, 2013 | Limited Liability Partnership Act, 2008 | Companies Act, 2013 |
| No. of Members | Only one | Minimum 2 to Maximum 50 | Minimum 2 to Maximum 50 | Minimum 7 to Unlimited | Minimum 2 to Unlimited | Only One |
| Registration | NO | Optional | Mandatory | Mandatory | Mandatory | Mandatory |
| Perpetual Succession | NO | No, if less than 2 partner | Yes | Yes | Yes | Yes |
| Management Control | Sole owner | Active Partners | Board of Directors | Board of Directors | Designated Partners | Sole member |
| Distribution of Profits | Profit of owner | Distributable as per deed | As per subscribed capital proportion | Distributable as dividend to Members | Distributable as deed | Profit of Sole owner |
| Liability | Unlimited | Unlimited | Limited | Limited | Limited | Limited |
| Minimum Capital Requirement | Not specified | Not specified | No minimum capital is required | 5 Lakhs | Rs. 1/- | No minimum capital is required |
| Taxation | Slab Rates | 30% | 22% | 22% | 30% | 22% |
| Compliances | Less Compliance | Moderate | Moderate | High | Moderate | Moderate |
| Formation Process | Easy to Form | Easy to Form | Moderate | Complex | Moderate | Moderate |
| Foreign Direct Investment | Not allowed | Not allowed | Allowed | Allowed | Allowed | Allowed |
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