To set up a Public Limited Company, one needs to:
The name of the company is its trade name or brand name along with its principal activities, and this company name is a registered name by which an incorporated company is identified.
It is critical that one choose a unique name which does not resemble the name of any existing LLP, any registered private company, public company or trademarks.
Here are some points one should keep in mind before choosing any company name:
In the case of Private Limited, the name shall end with words Private Limited. Company name has three parts, ‘the Name’, ‘Activity’ and words ‘Public Limited’. The structure should be:
Name approval process is governed by Ministry of Corporate Affairs (MCA) as per the Company Name Availability Guidelines issued under Companies Act 2013
‘Company Address’ is the address of the Registered Office of the proposed company which is used for all official communications. The temporary address is required, at the time of registration, which could be the address of any of the including Directors. Post registration process applicant has to provide the permanent business address of the registered office with all the documentary proofs of address, ownership.
One of the most crucial administrative requirements is the appointment of Directors by the shareholders. In the case of a public limited, minimum 3 Directors are required to manage the affairs of the company who can be same as shareholders. At least one of the directors has to be a Resident of India. To be a Director of a private limited company, one must have a DIN, which is Director Identification Number. To obtain a DIN, a Digital Signature Certificate (DSC) is also needed.
A public limited company can offer its shares to the public by issuing them in the stock market. The company collects its capital by the sale of its shares, and those who buy the shares are called the members. The amount so collected is called the share capital.
Minimum 7 shareholders are required in a public company limited by shares. They can be Natural or Artificial Persons such as registered companies or LLP. A shareholder can be same as the director of the company. The maximum any number of shareholders can be there, shareholders are the owners of the company, and they have certain rights as shareholders need to vote for appointing directors and agree on changes to the company.
The shares of a company are freely transferable and that too without the prior consent of other shareholders or without subsequent notice to the company.