Public limited company registration in Bihar– A public company is a business organization that has its shares available for sale to the public. In Bihar, the process of public company registration is governed by the Companies Act, 2013. A public company is a type of business organization that is owned by shareholders and has its shares available for sale to the general public. It has limited liability and is considered a separate legal entity from its shareholders.
Features:
- Limited liability for shareholders
- Separate legal entity
- Shares available for sale to the public
- Must have at least seven shareholders and three directors
- Must comply with various regulatory and reporting requirements
Types: There are two types of public companies:
- Listed Public Company: A company whose shares are listed and traded on a recognized stock exchange.
- Unlisted Public Company: A company whose shares are not listed on a recognized stock exchange.
Costs: The costs involved in the public company registration process in Bihar are relatively high compared to other business structures. The registration fee depends on the authorized capital of the company and varies from state to state.
Time Involved: The time involved in the public company registration process in Bihar is around 30-45 days. The registration process involves various steps, including obtaining a Digital Signature Certificate, Director Identification Number, and approval of the company’s name.
Advantages:
- Limited liability for shareholders
- Access to capital from the public markets
- Ability to raise funds through the issue of securities
- Increased transparency and credibility
Disadvantages:
- Higher regulatory compliance and reporting requirements
- Higher costs involved in the registration and operation of the company
- Limited control over the company’s operations
- Potential for hostile takeovers
Documents Required: To register a public company in Bihar, the following documents are required:
- Memorandum of Association
- Articles of Association
- Board resolution for the appointment of directors
- Address proof of the registered office
- PAN card and Aadhaar card of directors and shareholders
- Digital Signature Certificate and Director Identification Number
Public company registration in Bihar is a complex and costly process. However, it offers various advantages such as access to capital markets, limited liability for shareholders, and increased transparency. It is important for individuals to carefully consider the advantages and disadvantages before choosing this form of business structure. The registration process involves various documents and compliance requirements, and it is advisable to seek professional assistance for the same.
A public restricted organization is a willful relationship of individuals which is integrated and, in this way has a different legitimate presence and the risk of whose individuals is restricted.
Characteristics of Public Limited Company:
∙ Chiefs: according to the arrangements of the Companies Act, 2013 to begin a public restricted organization, at least 3 chiefs are required and there is no limitation on the most extreme number of chiefs.
∙ Limited Liability: The obligation of every investor is restricted. In basic words, an investor of a public restricted organization isn’t by and by answerable for any misfortune or obligations of the organization for any sum more noteworthy than the sum contributed by them; in spite of associations and sole ownerships, where the accomplices and entrepreneurs are together and severally responsible for the obligations of the business. Notwithstanding, this attribute of a public restricted organization doesn’t offer insusceptibility to the investors. The investors will be considered liable for their own unlawful activities.
∙ Paid up capital: A public restricted organization is expected to have a base settled up capital of Rs 5 lakh or such higher sum as endorsed under the demonstration.
∙ Prospectus: A prospectus is a complete assertion of the undertakings of the organization gave by a public restricted organization for its public and there is a prerequisite under the Act for public restricted organizations to give a plan. Be that as it may, there are no such arrangements for Private Limited Companies. This is on the grounds that private restricted organizations can’t welcome the general population to buy in for their portions.
∙ Name: It is an obligatory necessity under the Companies Act, 2013 for every one of the public organizations to add the word ‘restricted’ after their name.
Benefits of Public limited companies:
Following are the advantages of shaping a public limited company:
∙ More capital: Shares are proposed to the overall population in general for example anybody can put resources into a public restricted organization. Henceforth, works on capital of the organization.
∙ More consideration: Being recorded on a securities exchange guarantees that common assets, mutual funds and different merchants observe business of the organization. This might bring about better business potential open doors for the Public Limited Company.
∙ Spreading risk: Since the offers are offered to people in general at large the unsystematic gamble of the market is fanned out.
∙ Development and expansion opportunities: Due to less gamble, there is an ideal chance for developing and extending the business by putting resources into new activities from the cash raised through shares.
Convert the Private to Public Limited Company:
Extraordinary news you’re hoping to open up to the world. The interaction to change over from private to public restricted organization is basic, yet will require 30 to 35 days to finish, as there are many advances included. First you really want to change the articles of affiliation, then erase the word private from your name, start the enlistment interaction lastly sit tight for the endorsement of beginning of business. Do note, in any case, that a few prerequisites and charges will rely upon if you as of now have three chiefs, seven individuals (investors) and a settled up capital of Rs. 5 lakh (all are essential for a public restricted organization).
Recording of Company Registration Documents with MCA
Company Registration documenting comprises of readiness and recording of the streaming E-Forms i.e e-Form INC-32 – SPICe Application,e-Form INC-33: e-Memorandum of Association (SPICe MoA), e-Form INC-34: e-Articles of Association (SPICe AoA)
∙ Every one of the records executed and verified according to documentation necessities must be joined to the e-Form INC-32/33/34 and the e-Forms to be carefully endorsed with the Digital Signature Certificate (DSC) of the multitude of proposed investors/agents.
∙ Confirmation by the Central Registrar of Companies (CRC)
∙ The CRC confirms the application and assuming observed the reports are all together, the Central Registrar of Companies will enroll the Company and issue authentication of consolidation.
Frequently Asked Questions regarding Public Company Registration in Bihar:
Question : What is minimum capital required for public limited company?
A public restricted organization required a base capital of Rs. 5, 00,000. This sum should store by the investor in concluded share rate in the financial balance of organization. Then a similar sum can be utilized by the organization for its tasks.
Question: How much time is needed for Registration of a company?
Ordinarily it requires 8-15 Days in enlistment of an organization, but it is a lawful cycle and committing a proper course of events isn’t useful, Startups are encouraged to design ahead of time before the day for kickoff of their startup.
Question: I’m living where you don’t have an office, what to do ?
In the event that we don’t have an actual office in your city you might involve phone or web for directing,
Question: Can I Register a company at my residential address ?
Indeed, There is compelling reason need to have a business space for enlisting an organization in India.
Question: Can I Change address of company after I take a commercial space?
Indeed, its is an extremely simple interaction assuming that the new location is inside same city, the change can be made in no time.
A public limited company (PLC) is a type of business organization in which ownership is divided among shareholders and the company’s shares can be publicly traded on a stock exchange. A PLC is considered a separate legal entity from its shareholders and can raise significant capital through the issuance of shares to the public. In this note, we will explore the key features, advantages, disadvantages, and requirements for registering a public limited company.
Features:
- Limited liability for shareholders
- Ownership is divided among shareholders
- Shares can be traded on a stock exchange
- Minimum of seven shareholders and three directors required
- Higher level of regulatory and compliance requirements
- Must have a minimum authorized capital of Rs. 5 lakhs
Advantages:
- Limited liability for shareholders
- Ability to raise significant capital through the sale of shares to the public
- Increased credibility and visibility
- Ability to attract top talent with the possibility of stock options or ownership
Disadvantages:
- Higher regulatory compliance and reporting requirements
- Greater public scrutiny and potential for negative publicity
- Reduced control over company operations due to shareholder involvement
- Potential for hostile takeovers
Registration Requirements: To register a public limited company in India, the following requirements must be met:
- Minimum of seven shareholders and three directors
- Memorandum of Association and Articles of Association must be drafted and filed with the Registrar of Companies
- Directors must obtain a Digital Signature Certificate and Director Identification Number
- The company’s name must be approved by the Registrar of Companies
- The company must obtain a Certificate of Incorporation and a Permanent Account Number (PAN)
Costs: The costs involved in the registration of a public limited company in India are relatively high compared to other business structures. The registration fee depends on the authorized capital of the company and varies from state to state.
Conclusion: A public limited company is a type of business organization that allows for significant growth potential and the ability to raise capital from the public. However, it comes with higher regulatory and compliance requirements, reduced control over company operations, and the potential for hostile takeovers. It is important to carefully consider the advantages and disadvantages before choosing this form of business structure and to seek professional assistance for the registration process.