Incorporation Services

INCORPORATION OF PUBLIC COMPANY

What Is A Public Company?

Public Company registration is done under the Companies Act, 2013. The registration of Public Company is subject to strict compliances. Further, if the company has a vision of huge capital investment, it can go for Public Company Registration.

Advantage of Public Company

  1. Minimum 3 directors and 7 shareholders.
  2. Company shall end with the word ‘limited’.
  3. No limitations on the maximum number of shareholders.
  4. Acceptance of deposit from the Public.
  5. Shares are freely transferable.

The disadvantage of Public Company

  1. Lack of Flexibility: Flexibility always acts as strength to every organization, but in the case of the public company, there is no such advantage. Every public company is bind by the rules and regulations, which results in a lack of flexibility in its operations.
  1. Lack of secrecy: To maintain the transparency and trust of the shareholders, the company provides full disclosure to the public due to which secrecy cannot be maintained. The Public is involved in decision making, the company cannot maintain the secrecy.
  1. Suitability: A public limited company is only favourable to large scale a business which is a disadvantage to small scale industries.
  1. High Costs: Registering the company as a Public Company requires a huge cost. To start a public company huge investment, time and procedural things are required to be complied with. The profit of the company depends upon the investment you have done.

Listing Company

A listed company is the one whose shares are traded/quoted/listed on an official stock exchange for public trading. Such companies have to adhere to the listing requirements of that exchange strictly. Besides, this may also consist of a minimum earning level and number of shares listed on the stock exchange.

Usually, such companies take out an IPO (Initial Public Offering) through which they sell their shares to the public. In turn, they receive capital. After that, the stock exchange lists such companies and let them trade their shares.

The price of the shares is decided on the basis of the supply-demand of the share.

Advantage of Listing

  1. Listed securities are preferred by the investors as they have better liquidity.
  1. Listing provides wide publicity to the companies since their name is mentioned in stock market reports, analysis in newspapers, magazines, TV news channels. This increases the market for the securities.
  1. It provides liquidity to investments. Security holders can convert their securities into cash by selling them as and when they require.
  1. Shares are traded in an open auction market where buyers and sellers meet. It enables an investor to get the best possible price for his securities.
  1. Ease of entering into either buy or sell transactions.
  1. Transactions are conducted in an open and transparent manner subject to a well defined code of conduct. Therefore investors are assured of fair dealings.
  1. Listing safeguards investors interests. It is because listed companies have to provide clear and timely information to the stock exchanges regarding dividends, bonus shares, new issues of capital, plans for mergers, acquisitions, expansion or diversification of business. This enables investors to take informed decisions.
  1. Listed securities enable investors to apply for loans by providing them as collateral security.
  1. Investors are able to know the price changes through the price quotations provided by the stock exchanges in case of listed securities.
  1. Listing of shares in stock exchanges provides investors facilities for transfer, registration of rights, fair and equitable allotment.
  1. Shareholders are provided due notice with regard to book closure dates, and they can take investment decisions accordingly.

Disadvantages of Listing

  1. Listing might enable speculators to drive up or drive down prices at their will. The violent fluctuations in share prices affect genuine investors.
  1. In case of excessive speculation, share prices might not reflect its fundamentals. The stock markets may fail to be the true economic barometer of an economy’s performance.
  1. In case of bear markets share prices might be hammered down, and the standing of a company might be lowered in the eyes of the investors, shareholders, bankers, creditors, employees etc.
  1. Listing of securities may induce the management and the top level employees to indulge in ‘insider trading‘ by getting access to important information. Such actions adversely affect the common security holders.
  1. The management might enter into an agreement with brokers to artificially increase prices before a fresh issue and benefit from that. Common public might be induced to buy shares in such companies, ultimately the prices would crash and the common investors would be left with worthless stock of securities.
  1. Listing requires disclosing important sensitive information to stock exchanges such as plans for expansion, diversification, selling of certain businesses, acquisition of certain brands or companies etc. Such information might be used by the competitors to gain advantage.
  1. Outsiders might acquire substantial shares in the company and threaten to take over the company or they might demand hefty compensation to sell their shares.
  1. Stock exchanges in India still suffer from shortcomings. Listed securities might be utilized by scamsters to indulge in scams.

Requirements for company incorporation:-

  1. Information
  1. Proposed name of Company ( at least 6 name in preference wise ) :
  2. Share Capital Amount
  3. Object of company
  4. No of Director and shareholders
  5. Ownership ratio (%age)
  6. Email Id of all Directors and Shareholders
  7. Mobile No. of all Directors and Shareholders

     2. Documents

  1. Address proof of all Directors and Shareholders
  2. Pan Card of all Directors and Shareholders
  3. Bank Statement of all Directors( latest by 2 months )
  4. Address Proof of Office/Place (Electricity Bill latest by 2 months) and NOC/Rent Agreement
  5. Passport size photo of all Directors

(In case of foreign national, the following documents need to be notarized before the Notary Public and the Certificate of Notary shall be authenticated by a Diplomatic or Consular Officer empowered in this behalf :

  1. Passport- (Should be in English, otherwise Translated one)
  2. Date of Birth Certificate or any Other Proof where applicant’s father’s name is written.
  3. Utility Bill or Bank Statement as address proof.
  4. Colour passport size photograph.

Translation:-

We at Sure Consult give you full assistance in choosing the right form of company structure to incorporating such form. At Sure Consult, we are giving 100% online assistance in corporation of Public limited company from anywhere in the world. Our experts have incorporated 1000+ company/LLP and have huge experience in setting up such forms of business.

Time Line:-

Generally time taken to incorporate company is 10-15 working days subject to government approvals and documents availability.

Fees: –

Silver Plan

Gold Plan

Dimond Plan

Name Approval

Name Approval

Name Approval

Three Digital Signatures

Three Digital Signatures

Three Digital Signatures

Two DIN of Directors

Two DIN of Directors

Two DIN of Directors

Registration of Company

Registration of Company

Registration of Company

1 Lack Authorized Capital

1 Lack Authorized Capital

1 Lack Authorized Capital

Incorporation Fee

Incorporation Fee

Incorporation Fee

MOA

MOA

MOA

AOA

AOA

AOA

Incorporation Certificate

Incorporation Certificate

Incorporation Certificate

PAN, TAN ESI and PF Registration

PAN, TAN ESI and PF Registration

PAN, TAN ESI and PF Registration

Bank Account Opening

Bank Account Opening

Bank Account Opening

Commencement of Business Certificate

Commencement of Business Certificate

Commencement of Business Certificate

 

hard-copy share certificates

hard-copy share certificates

 

Lease Assistance

Lease Assistance

 

Assistance on business licenses

Assistance on business licenses

 

Directors for incorporation of Company

Directors for incorporation of Company

 

 

Registered office for 6 months

 

 

Payment gateway

Rs.1 5,200/-

Rs. 17,300/-

Rs. 20,500/-

Process in completely online:-

Once we receive the professional fees online, you will receive a link. You will then just have to upload the documents on the website. We will take up the from here.