The Public Limited Company (SA) is a commercial modality characterized by having the share capital distributed in the form of shares, which can be freely transferred between the partners.

  • Of the different types of companies that exist, these types of companies are not usually widely used by entrepreneurs and startups because high social capital is required.
  • This type of business creation has numerous advantages for professionals who decide to opt for this figure.
  • Therefore, for many years it was the preferred option for medium and large businesses.

Advantages of the Public Limited Company

  1. The share capital is divided into shares that can be freely transferred, so that the inclusion of new partners and the economic maintenance of the company are encouraged.
  2. The power of administration may fall on a person or a group, without requiring the quality of shareholders.
  3. In relation to its tax obligations, the Public Limited Company is subject to RD 1/2010 of July 2, which allows this type of company to be listed on the stock exchange.
  4. The SA provides an image of greater seriousness and solvency in businesses dedicated to pharmaceuticals, the banking sector, insurance, etc.

Differences between Private Companies and Companies

  1. A corporation is a company listed on a recognized stock exchange and its shares are listed. A private limited company, on the other hand, is not listed or listed on the stock exchange. Only members are privately owned.
  2. Public companies are required to hold a statutory general meeting of members. For private companies, there is no such obligation.
  3. For a public company, a pamphlet or declaration must be issued. However, this is not the case for private companies.
  4. A public company must appoint a company secretary, while a private company can choose at its sole discretion.
  5. The public company requires a start-up certificate to start its business after it is established. In contrast, private companies can start business immediately after they are established.
  6. In a limited liability company, the transfer of shares is completely restricted. Shareholders of a public company are free to transfer shares.
  7. The number of people is limited and the number of limited companies is limited, so the scope of a limited company is limited.
  8. On the contrary, the range of public companies is huge. This is because employers have access to financing from the general public and must comply with legal restrictions.

FAQs

What are the registration necessities for an Indian limited company?

In India, companies can be set up anywhere, but require a minimum of seven shareholders and three directors. INC 5lakhs’s minimum capital stock requirement has been removed under the Companies Act 2015.

Can a foreigner or NRI be a director of a private company?

Yes

Can a foreigner or NRI own private company shares?

Yes

Can a foreign parent business start a subsidiary in India?

Yes

How foreign companies set up new companies in India?

  • By completing eForm FC-1, any foreign company can establish a business location in India.
  • Foreign companies do not need to obtain a foreign company registration number and register as a foreign company.
  • Foreign companies must submit to Registrar Form FC-1, along with the required fees and documents.
  • The application must be supported by a certified copy of the Reserve Bank of India’s approval under currency management laws or regulations.

Can a foreign company register a start up in India?

Yes, you will be registered according to FDI guidelines and registration rules.

What are the FDI strategies for foreigners of private companies?

In India, many industries allow 100% foreign direct investment.

. Is it mandatory for foreign company directors to take DIN?

There is no need to request and obtain a DIN for directors of foreign companies.
However, you will need to register the DSC of the authorized representative of the foreign company through the relevant DSC service available on the MCA portal.

What are the other registration necessities of a private limited company in India?

  • Register based on the Store Law
  • Register a value added tax (VAT) with a sales tax representative in your area
  • Register for a professional tax
  • Register with Employee Reserve Fund Organization
  • Register for ESIC (Health Insurance)

What are the corporate responsibilities?

  • Public limited companies deal with public funds and have to do stricter and stricter compliance than private limited companies.
  • In addition to regular income tax-related compliance, RBI, a company with an ROC / MCA, needs to meet many regular and annual compliances.

Are you Interested in this Service?

Email: reach@taxpuram.com
Phone: ‎+91 83417 41961
Give us a call or drop by anytime, we endeavour to answer all enquiries within 24 hours on business days.