A public limited company is a voluntary association of members which can be incorporated by seven or more persons and Minimum 3 Directors. It has a separate legal existence apart from its members who compose it. It must have a minimum of seven members but there is no limit as regards the maximum number. It’s shares are freely transferable and that too without the prior consent of other shareholders.
It is independent legal person, its existence is not affected by the death, retirement or insolvency of any of its shareholders. These companies can accept deposits from the public.
These Companies can be listed or unlisted.
Checklist for Company Registration
As per the Ministry of Corporate Affairs (MCA), if anyone wants to register Company in India, the below conditions have to be met.
Minimum Seven People:
Minimum seven people are required to start the public limited company in India. These companies shall have minimum three directors. The same seven people can become shareholder and director of the company. However, maximum any number of people can become shareholder in the public limited company.
No Minimum Capital:
Capital of the business is depending on the need of the business and statutory no minimum capital is required to start the public limited company. However, minimum authorized and subscribed share capital required for public company is Rupees five lakh.
One Resident Director :
Among director, one person must be resident Indian.
Unique Name :
The name of the public limited company should be unique and should not be similar to the any existing company name or trademark.