Direct Tax Services in Patna

The Public limited company is the company which is incorporated or registered under the Companies Act, 2013. It is different from the Private Limited Company, and therefore its compliance also changes. The shares of a Public limited company is issued to the public. These shares are then freely traded. Public Limited Company is also called as publicly held company. It can be listed on stock exchange, but for Private Limited Company it should first get converted in to a Public limited Company, only then it can be listed on stock exchange. In Public limited company, there should be a minimum paid up capital of Rupees 5 Lakhs, minimum 3 Directors and a minimum number of shareholder should be 7. Compliance for the Public Limited Company is also more as compared to other company. Features: There are many of the characteristics of the Public Limited Company like; Directors: According to the Companies Act, 2013, to start up a Public Limited Company you must require a minimum of 3 Directors and there can be an increase in a number of Directors in the future. Limited Liability: The liability of each shareholder is limited. In simple words, a shareholder of a Public Limited Company isn’t personally responsible for any loss of the company for any amount greater than the amount invested by them. Paid Up Capital: A Public Limited Company is required to have a minimum paid-up capital of Rs. 5 lakh or such higher amount as prescribed under the act. Prospectus: A Prospectus is a legal document which is drafted by Public Limited Company that includes securities for sale, investment shares and many more. This is made for the Public especially. Name: This requirement comes under the Companies Act, 2013 which is a must for all the public companies to add the word “limited” after their name.

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