Any seven or more persons who are interested for working at big level in the market or creating their goodwill for a long period, or want to raise the fund from the public at large, can choose to incorporate a public limited company .
A public limited company has various advantages provided by the government i.e. there is no bar on number of members, there is no bar on transferability of shares.
The public limited must have minimum three directors and minimum seven shareholders.
The public limited company need Rupees 5 lakhs paid up capital at initial stage of incorporation.
ADVANTAGES OF INCORPORATION OF PUBLIC LIMITED COMPANY:-
Good access of more capital.
Transferability of shares.
Eligible for trading in stock market.
No bar on number of members.
Better resale value of your business.
Credibility in the market.
Better Public image .
Benefits of Financial help by bank.
FOR MAINTAINING A PUBLIC LIMITED COMPANY IN INDIA THERE ARE SOME MANDATORY COMPLIANCES WHICH HAS TO BE COMPLIED BY EVERY PUBLIC LIMITED COMPANY WHICH IS REGISTERED IN INDIA OTHERWISE NON COMPLIANCES ATTRACT HEAVY PENALTIES AND EVEN IN SOME CASES DISQUALIFICATION OF THEIR DIRECTORS OR STRIKING OFF OF COMPANY BY REGISTRAR OF COMPANY ON ITS OWN .
THE LIST OF ANNUAL COMPLIANCES WHICH ARE APPLICABLE ON A PRIVATE LIMITED COMPANY ARE AS FOLLOWS:-
FILING OF INCOME TAX RETURN IN FORM ITR-6 WITH INCOME TAX DEPARTMENT ON OR BEFORE DUE DATE.
FILING OF FINANCIAL STATEMENT ANNUALLY IN FORM AOC-4 WITH THE MINISTRY OF CORPORATE AFFAIRS ON OR BEFORE DUE DATE.
FILING OF ANNUAL RETURN IN FORM MGT-7 WITH THE MINISTRY OF CORPORATE AFFAIRS ON OR BEFORE DUE DATE.
CONDUCTING AN ANNUAL GENERAL MEETING IN A PROPER MANNER EVERY YEAR AS PER COMPANIES ACT,2013.
MAINTING ALL THE STATUTORY REGISTERS OF COMPANY AS PER COMPANIES ACT,2013.
ALL COMPANIES HAVING GST NUMBER HAVE TO FILE THEIR GST RETURNS TIMELY .
ALL COMPANIES WHICH ARE REGISTERED AS A PRIVATE LIMITED COMPANY , THEY HAVE TO APPOINT THE FIRST AUDITOR WITHIN 30 DAYS OF INCORPORATION.
IN CASE COMPANY DEAL WITH FOREIGN COMPANIES THEY HAVE TO COMPLY ALL THE FOREIGN EXCHANGE MANAGEMENT ACT AND TRANSFER PRICING GUIDELINES AS PER INTERNATIONAL TRANSACTIONS.
IN CASE COMPANY IS LISTED ON ANY STOCK EXCHANGE THEY HAVE TO COMPLY ALL THE SEBI REGULATIONS AND LISTING REGULATIONS.
IN CASE COMPANY IS A SUBSIDIARY OF ANY FOREIGN COMPANY THEY HAVE TO COMPLY WITH ALL THE FOREIGN COMPANY REGULATION ALSO OF THE COUNTRY IN WHICH HOLDING OF PUBLIC LIMITED COMPANY IS REGISTERED.