What is a Public Limited Company?
A public limited company is defined to mean a company that is not a private company and which has a minimum paid up share capital of Rs. 5 lacs or more. The restrictions that are statutorily applicable on a private company do not apply to a public company. Therefore, the shares of a public company are freely transferable and there is no restriction on the maximum number of shareholders that it may have. A public company can also accept deposits from public as opposed to a private company.
As per Companies Act, 1956, even a private company that is a subsidiary of a public company falls within the definition of a public company. This means that a private company which is a subsidiary of a public company will be required to comply with almost all provisions of the Companies Act that apply to a public company. However, the basic characteristics of a private company provided under Companies Act such as restrictions on transferability of shares, minimum paid up capital, etc. do not change by virtue of it being a subsidiary of a public company.
Procedure for Registration of Public Limited Company
For forming a Public limited company, following steps are required to be followed:
For More Detailed Company Registration Procedure