A public Limited company is the largest form of business available in India. Public limited company is a large company and is formed in order to raise funding from public through IPO etc. There is no limit on maximum no. of members however, after 500 members, SEBI approval is needed..
# Students: Students over and above the age of 18 can form any type of company in India.
Employees: Employees are generally not allowed by their employers to form a company and be a director. They may hold shares but cannot take position as director. If you want to open a company, then check your employment agreement and you may also seek permission from the respective employer.
# Person with criminal background: Though they are not barred to form a company, however, they need to give various declarations to the ROC.
How to raise funding in a Public Limited Company?
Build a plan and a working business model: Gone are those days when you can get funding on the basis of an idea.Now, is the time, that you should test your own idea, reach a MVP and then build a strong future plan.
Reach investors and sign the term sheets: In this step, you must reach different investors and explain them your model, future plans and how they can earn if they invest into your business.
Prepare Documents: Once you sign the term sheet, next and final step is to prepare documents like Shareholder agreement etc.
Mandatory Compliances after Public Company Registration
BM : Every private company needs to call minimum 4 board meeting as per the Companies Act, 2013.
Filings : A company needs to file MGT 14 from time to time. Also, needs to prepare some statutory registers.
Annual : This is most important where annual filing needs to be completed within time.
How to choose Company name for Public Company Registration?
ABC (Prefix) + Technologies (Suffix) + Public Limited (End)
# ABC - Prefix: The prefix should reflect your brand name and should be unique. I.e. no it should not match with any existing company or trademark. The example of prefix i.e. your first word is TATA, Reliance, Hubco etc.
# Technologies - Suffix: It is regarded as the second word of your company name. This should reflect your main proposed business. E.g., if you are into technology company, then write technology, for steel business, you can use TATA Steel Ltd.