There is limited liability for the shareholders.
The business has separate legal entity. There is continuity even if any of the shareholders die.
These businesses can raise large capital sum as there is no limit to the number of shareholders.
The shares of the business are freely transferable providing more liquidity to its shareholders.
There are lot of legal formalities required for forming a public limited company. It is costly and time consuming.
In order to protect the interest of the ordinary investor there are strict controls and regulations to comply. These companies have to publish their accounts.
The original owners may lose control.
Public Limited companies are huge in size and may face management problems such as slow decision making and industrial relations problems.
Procedure and Steps Takezn for Register a Private Limited Company:-
Step 1. Application for Director Identification Number (DIN) in form DIR-3 & DSC (Digital Signature Certificate).
Step 2. Search for the Company Name availability.
Step 3. Application for the Name availability.
Step 4. Drafting of Memorandum of Association (MOA) & Articles of Association ?(AOA).?
Step 5. Filing of e-forms with RoC (Registrar of Companies).
Step 6. Payment of RoC Fees & Stamp Duty.
Step 7. Verification of documents / forms by RoC
Step 8. Issue of Certificate of Incorporation by RoC
ELIGIBILITY FOR PUBLIC LIMITED COMPANY REGISTRATION IN INDIA
Minimum Seven Person
Seven person is needed to become the shareholder of the company. However, there is no limit of shareholders.
No Minimum Capital
No minimum capital is prescribed, it must be based on the business requirements. The registration fee is based on the amount of capital
One Resident Director
One director of the company must be resident in India. A person is said, resident, when he stays in India for at least 182 days in the FY
Name of the company should be unique, and it must not be same or similar to the name of any existing company or a trademark.
DOCUMENTS REQUIRED PUBLIC LIMITED COMPANY REGISTRATION
Two front-facing colour photographs of directors / shareholders
Pan Card of each director, The name must match with IT database
Identity Proof of each director, (Aadhar Card, Passport, Driving License or Voter ID Card)
Address Proof (Bank Statement or Passbook, electricity bill, telephone bill, or any utility bill)
Proof of the registered address of Company (Sale Deed, electricity bill, tax paid receipt or any other utility bill)
No objection Certificate from the owner of premises where registered office of the company shall be situated
Documents Must be self attested and attested by a Gazetted Officer, Post Master or a Bank Manager
ALL INCLUSIVE FEE RS. 15000 ONLY
A trust can be created by execution of a trust deed; there are two types of trust. A public trust (charitable trust) is created for the benefit of general public whereas a private trust is created for the benefit of a particular group of individuals known as the beneficiary.
TRUST REGISTRATION PROCEDURE IN BRIEF
The first step to register a trust starts with the drafting of a trust deed. The trust deed is to be executed on appropriate non-judicial stamp paper, the rate of stamp duty differs from state to state. The next step is to seek an appointment with the sub-registrar office having jurisdiction based on the registered office of the trust, and the government registration fee is to be paid after that. On the appointed date the trust deed is presented before the sub-registrar where all trustees need to be present along with two witnesses. The registration process is then undertaken at by the office of the sub-registrar, and the registered deed can be collected after a week time. The purpose for which a public trust can be created is for the benefit of general public, and the same must be clearly prescribed in the trust deed, as it guides its functioning in the course of time. Generally a public trust is created for setting up a school, colleges, other educational initiatives, hospital, old age homes, orphanage, for promotion of child health and their empowerment, welfare of weaker section of society, and for fulfillment of Corporate Social Responsibilities (CSR) by companies under section 135 of the Companies Act, 2013.
IMPORTANT POINTS ON TRUST REGISTRATION IN INDIA
Private Vs Public Trust
Indian Trusts Act, 1882 regulates and administers the private trusts in India, whereas the public trusts direct the functioning of public trusts except in the state of Maharashtra and Gujarat where public trusts are governed by Bombay Public Trusts Act, 1950.
In public charitable trusts, the most important instrument is the trust deed, and it is important that aims and objectives of the trust should be specified in the trust deed. Both the settlor and trustee should sign the trust deed in the existence of two witnesses.
Number of Trustee
There is no upper limit for the trustees, but minimum two trustees are always required for registration. The trust deed should
have provision concerning the management of the trust along with the procedure of appointing or removing the members.
Privileges and tax benefits are not available to the private trusts, whereas public trusts after registration with the income tax can avail tax exemptions. We are experienced in obtaining necessary tax registration for tax exemption or benefit.
REQUIREMENTS FOR TRUST REGISTRATION IN INDIA
Trust Deed which is signed by settlor and trustee in the presence of two witness
The trustee can be any person that is an individual or body corporate which is capable of holding property and competent to enter into a valid contract.
It is mandatory to register the trust deed if it is a charitable or religious trust or about an immovable property.
For the purpose of registration, settlor or trustees and at least two witnesses must be physically present at the office of sub-registrar.
The trust can be registered only in the state in which its registered office shall be situated. However, it can operate on all India basis.