Advantages

• Good for Large Projects and for when a large public share holding is envisaged
• VC funding friendly
• ESOP possible
• FDI allowed in most sectors
• Limited liability protection
• Best for Infrastructure, Manufacturing or large Trading businsses

Promoters are Called:

• Shareholders
• Directors

Structure Requirements

• Minimum Shareholders: 7
• Maximum Shareholders: No limit
• Minimum Directors: 3
• Maximum Directors: 15+
• Capital: No minimum prescribed

NRI / Foreign Participation

• Allowed subject to FEMA
• FDI permitted in permitted sectors

Meetings

• Board Meetings: Minimum 4 per year
• AGM: 1 per year

Subsidiary of Foreign Company

• Foreign company can set up Indian public company.

Audit

• Mandatory annually
• Internal audit may apply depending on size.

Dividend Repatriation (in case of NRI/Foreign share holders)

• Permitted subject to FEMA compliance.

Directors Remuneration

• Directors can draw salary

Minimum Statutory Compliance

• Books of accounts
• Statutory audit
• Tax Audit (if turnover exceeds 10 crores, 75 lakhs for professional income )
• Annual MCA filing
• Income Tax filing
• GST Filing
• TDS compliance
• Advance Taxes
• EPF/ESI/PT
• Statutory Registers
• Board and Shareholder meetings

Corporate Income Tax Rate

• 22% (115BAA option) or 25%/30% depending on turnover