Public Company

What is Public Company?


As per name we can say that Public company means a widely held company in which the 

(i)minimum shareholders are seven and maximum unlimited and

(ii) minimum directors are three and maximum fifteen

As per section 2 (71) of Companies Act, 2013, “public company” means a company which—

(a) is not a private company; 1 [and] 

(b) has a minimum paid-up share capital as may be prescribed.

Provided that a company which is a subsidiary of a company, not being a private company, shall be deemed to be public company for the purposes of this Act even where such subsidiary company continues to be a private company in its articles.

Provided further that— 

(A) persons who are in the employment of the company; and 

(B) persons who, having been formerly in the employment of the company, were members of the company while in that employment and have continued to be members after the employment ceased, shall not be included in the number of members; and 

(iii) prohibits any invitation to the public to subscribe for any securities of the company;

Documents/Checklist for a Public Company

Copy of Aadhar

Copy of PAN

Driving License OR Voter ID card OR Passport

Bank Account Statement Updates

Mobile Number

Email ID of all promoters and directors

Passport Size Photograph of all promoters and directors

Address Proof for Registered Office (Electricity Bill not more than 1 month)

Name of Company

Qualification of Promoter

Paid-up Capital of Company

Specimen Signature of One Director

If you want to register/incorporate “Public limited company in India”, then you can completely rely on our team.

Our experts will provide all the relevant information related to a Public limited company’s “registration fees, process, name availability, registration certificate, etc.”.

Benefits of the Public Company

Limited liability

A company limited by shares is a registered company having the liability of its members limited to the amount, if any, unpaid on the shares respectively held by them. If his shares are fully paid-up, he has nothing more to pay.

Perpetual Succession ​

An incorporated company never dies. Perpetual succession, therefore, means that the membership of a company may keep changing from time to time but does not affect its continuity. Members may come and members may go out but the company can go forever.

Separate Management

No member can claim himself to be the owner of the company’s properties either during its existence or in its winding up. A member does not even have an insurable interest in the property of the company.

Transferability Of Shares

The capital of accompany is divided into parts called shares. The shares are said to be moveable property and subject to certain conditions, freely transferable for that. No shareholder is permanently or necessarily wedded to a company. It may be noted that this right of shareholder is restricted in the case of a private company.

Capacity To Sue And Be Sued

A company, being a body corporate, can sue and be sued in its own name.

Contractual Rights

A company, being a legal entity different from its members, can enter into contract for the conduct of the business in its own name. A member of a company cannot sue in respect of torts committed against it, nor can be sued for torts committed by the company.

Separate Property

The members of a company may derive profits without being burdened with the management of the company. The company is administered and managed by its own managerial personnel.

Termination of existence

It has the existence only in contemplation of law. It is created by law, carries on its affairs according to law throughout its life and ultimately is affected by law. Generally, existence of a company is terminated by means of winding up.