Public Limited Company Registration
Public Limited Company Registration enjoys a great avenue in terms of fund borrowing. 5 lakhs of minimum paid-up capital, and 7 shareholders and 3 directors are all needed for its incorporation. A Public Limited Company presents more transparency, improved accountability, and better transferability towards shareholders.
To avail our services, we charge 499/- as an advance or security payment.
PUBLIC LIMITED COMPANY REGISTRATION - AN OVERVIEW
For all those entrepreneurs who are planning to step up huge businesses like IT infrastructure or a manufacturing plant, a Public Limited Company Registration or a PLC is the best business structure. Nowadays, most people do not prefer Public Limited Company over Private Limited Company. Yet, it will be relevant to consider that if an individual is seriously planning something huge and requires to raise capital from the public by distributing shares in return. In that case, incorporating a Public Limited Company is the best option.
A Public Limited Company possesses all the benefits and privileges of a corporate entity mutually with the feature of Limited Liability. Moreover, some of the leading and famous examples of a Public Limited Company are Reliance Communications Limited, TATA Steel Limited, etc.
WHAT IS A PUBLIC LIMITED COMPANY?
A Public Limited Company is registered as per requirements guided under the Companies Act, 2013. All the shareholders and directors of a Public Limited Company enjoy the feature of Limited Liability. Besides, this business structure is permitted to raise capital from the public by publishing shares in return.
For a Public Limited Company registration, a minimum number of 7 shareholders and 3 directors are required. In Companies Act, 2013. the definition of a PLC is also provided under section 2(71). According to that, no minimum amount of capital is required to register a Public Limited Company.
Public Limited Company Registration in India is considered a better form of business than Pvt Ltd even though the laws and regulations of a Private Limited company are kind of lenient compared to Public Limited Company.
This business structure grants the benefits of a Private Company and has characteristics like easy transferability of shares and ownership.
WHAT IS A PUBLIC LIMITED COMPANY REGISTRATION?
First of all, the Public Limited Company registration needs at least 3 directors and 7 shareholders. The characteristics concerning its members of a public limited company are similar to a Limited Liability partnership. Also, it carries the right to issue shares to the public to raise capital for the Company.
A subsidiary company for a Public Company Registration shall also be expected to be a public company, even if the subsidiary company endures listed as a private company in its Articles.
BASIC FEATURES OF PUBLIC LIMITED COMPANY
Below explained are all the basic feature of a Public Limited Company :
- No of Directors and Members needed: A Minimum no of 03 Directors and 07 Members are required to establish a Public Limited Company.
- Company Name: It’s mandatory for a Public Limited Company to add a “Limited” word as a suffix at the end of their company name. Moreover, it’ll represent the Identity of a Public Limited Company.
- Separate Legal Entity: There is a Separate Legal Entity provided for a Public Limited Company. This means the existence of a company is separate and distinct from its members.
- Company’s Prospectus: In Public Limited Companies, the issuance of Prospectus is considered mandatory. The Prospectus also acts as a general note concerning the business and affairs of the Company. Besides, the primary aim of issuing shares to the general public is to raise capital. Still, a Private Limited Company has to fulfill no such agreement as it is not authorized to raise capital from the general public.
- Paid-up Share Capital: As per the laws of the Companies Act, 2013, no minimum amount of share capital is required for getting Public Limited Company Registration.
- Limited Liability: All the members of a Public Limited Company holds the characteristic of Limited Liability. This means that the liability of a member is limited to the extent of the outstanding amount unpaid on the shares subscribed.
- Transferability of Shares: In a Public Limited Company, the members are free to transfer the ownership of their shares.
BENEFITS OF A PUBLIC LIMITED COMPANY registration
Mentioned below are some advantages of a Public Limited Company are :
- Improved Capital:
- The general public is invited by way of the Prospectus to buy or subscribe to the Company’s shares. Therefore, contributing to claims by the general public leads to enhanced capital of a Public company.
- Fewer Risks: The Public Limited Company is allowed to sell its shares to the public, leading to a reduction in the range of unsystematic risks of the market.
- Listing in the Recognized Stock Exchange: By the following compliance, on any Recognized Stock Exchange, a public limited company can easily list its shares.
- Perpetual Succession: According to the feature of Perpetual Succession, the existence of a Public Limited Company will not be influenced by the death, insolvency, insanity, retirement of any member.
- Limited Liability: The liability of the members is limited to the extent of the amount remaining outstanding on shares.
- More Preference Given: when it comes to offering loans, banks give more Preference to a Public Limited Company than any other business structure.
- Transfer of Shares: Shareholders are authorized to transfer or sell their shares with ease.
PREREQUISITES TO OBTAIN A PUBLIC LIMITED COMPANY REGISTRATION?
Listed below are the requirement that needs to adhere for the registration of Public Limited Company is :
- Establishment of a Public Company needs a minimum of seven shareholders and three directors.
- At least one of the directors should have a Digital Signature Certificate (DSC) for signing documents electronically and digitally.
- All the directors of the Company should obtain DIN (Director Identification Number) mandatorily.
- An application declaring the Company’s main Object Clause is to be made—besides, the object clause talks in detail about all the Company’s activities after its establishment.
- Submission of the application to ROC (Registrar of Companies) and the required documents like MOA, AOA.
DOCUMENTS NEEDED FOR OBTAINING PUBLIC LIMITED COMPANY REGISTRATION?
The below-listed documents must be required for public limited company registration:
- Identity Proof of the directors and shareholders,
- PAN Card
- Aadhaar card
- Voter ID
- Driving License
- Address Proof of all the directors and shareholders of the related Company.
- Service bill in the form of phone, water, gas, or power bill of the registered office. Which will act as residential proof for the place being used as Registered Office. It must not be older than two months.
- A No-Objection Certificate (NOC) issued from the landlord of the place being used as a Registered Office.
- Directors Identification Number (DIR) of all the members.
- Digital Signature Certificate (DSC) of the members.
- Memorandum of Association (MOA) and Article of Association (AOA).
PROCEDURE FOR PUBLIC LIMITED COMPANY REGISTRATION
Listed below are the steps involved in the process of incorporating a Public Limited Company :
- Get DSC and DIN: The first and principal step is to get DSC (Digital Signature Certificate) for at least one director, which will be used in signing documents digitally and electronically. It is a mandatory document and is issued by your CS or certified authority. After, all the Company directors are compulsorily required to get DIN (Director Identification Number). The MCA has now simplified getting a DIN as directors can now apply DIN by just filing the SPICe form.
- Apply for Company’s Name: In the next step, check name availability by visiting the MCA (Ministry of Corporate Affairs) official website, selecting the MCA services, and checking the name availability. It shall be considered that the name submitted must not be the name already taken or registered.
- Filing Form SPICe+: Once the submitted name has been approved, you will be eligible to file the SPICe+ form for availing of the Certificate of Incorporation. Along with the form, the applicant must attach all the documents needed, such as MOA and AOA. Moreover, these two documents contain all the details regarding the purpose, concept, objectives, aims, business ventures, and the roles and responsibilities of directors and shareholders together with the definition of a proposed company.
- Obtaining Certificate of Incorporation: when all the applications and documents submitted have been received and verified by the authorities, and the Company will then receive its Certificate of Incorporation, which includes its Corporate Identification Number (CIN) and the Date of Incorporation.
- Availing PAN and TAN for the Company Incorporated: Once the Company obtained its COI, members and the Company’s directors can now apply for the PAN and TAN in the name of the Company by using for MCA.
- Open a Bank Account: With the guidance of PAN card details and the COI (Certificate of Incorporation), the directors can easily open a bank account in the Company’s name.
FAQs for Public Limited Company Registration
At least 7 shareholders and 3 directors are required for the Incorporation of a Public Limited Company.
It's mandatory that the director must be at least 18 years or above. Moreover, any individual can become the director of the Public limited company, including an NRI or foreign national.
The registration process of a Public Limited Company is done totally online. Therefore, neither you are needed to be physically present at our office nor at the Ministry of Corporate Affairs. Further, we will send our representative to your respective office or home address for obtaining a signature on the document.
Yes, an NRI or a Foreign National is eligible to become a Director of a Public Limited Company.
No, an individual is not required to hire a full-time CA (Charted Accountant) or CS (Company Secretary). We will provide you with an Annual Compliance Package by which you will get the right and timely advice from our team.
Usually, a period of 15 business days is required by our experts for registering a Company.
The DSC is the acronym form for the Digital Signature Certificate, which is issued by the Certifying Authority and is used to sign the documents electronically and digitally.
DIN or the Director Identification Number, is mandatory required by every listed director of a company.
A Public Limited Company is required to hold at least one Board Meeting every three months. Moreover, a Public Limited Company is also obligated to conduct an Annual General Meeting (AGM) at least once every year.
The term PLC is an acronym form of the Public Limited Company.
|Features||Private Limited Company||Public Limited Company|
|Minimum members||A minimum of two members are needed to incorporate a Private Limited Company||A minimum of seven members are required to incorporate a Public Limited Company|
|Minimum directors||A minimum of two directors are required to incorporate a Private Limited Company||A minimum of three directors are required to incorporate a Public Limited Company|
|Maximum members||A maximum of two-hundred members are required to incorporate a Private Limited Company||Unlimited|
|Minimum capital||No, minimum amount is required as the Minimum Capital||No, minimum amount is required as the Minimum Capital|
|Invitation to Public||No||Yes|
|Issue of Prospectus||No||Yes|
|The Quorum at Annual General Meeting||Two members||Five members|
|Certificate for the Commencement of Business||No||Yes|
|Suffix used at the end of name||Private Limited||Limited|
|Managerial Remuneration||No restriction||Cannot exceed more than 11% of the Net Profits|
|Statutory meeting (mandatory)||No, conducting a Statutory Meeting is not compulsory for a Public Limited Company||Yes, conducting a Statutory Meeting is compulsory for a Public Limited Company|
A Public Limited Company raises its capital either by selling the shares to the already existing member or by issuing new shares to the public.
The shareholders of a company are considered as the owner of the company.
All the controlling power regarding the affairs of that company is given to the appointed directors.
The main advantage of a Public Limited Company (PLC) is that it is very easy to raise share capital from both the existing and new investors. Besides, the Shareholders also possess the right to sell their shares.
The following listed are the ways of dissolving a Public Limited Company:
- Voluntary Liquidation.
- Winding up by the Tribunal.
Two minimum no of directors is required for the establishment of a Public Limited Company. However, the maximum count of the directors appointed, shall in any case, will not exceed the limit of 15 directors.
MOA is the acronym form used for the Memorandum of Association. This document showcases the company’s purpose, vision, and business object prior to its Incorporation.
The basic features of a Public Limited Company are listed below:
- Separate Legal Entity,
- Limited Liability,
- Perpetual Succession,
- Separate Property,
- Transferability of Shares,
- Common Seal, and
- Capacity to Sue and being Sued.
No, Shareholders and Directors are two very separate roles within a Public Limited Company. In members terms, a shareholder owns the business, whereas a director runs it.
Yes, the registration process of a Public Limited Company is completely online. Therefore, neither you are required to be physically present at our office nor at the Ministry of Corporate Affairs.
A Public Limited Company is qualified to issue the listed shares mentioned below:
- Ordinary Shares,
- Cumulative Preference Shares,
- Preferences Shares,
- Bearer Shares and
- Redeemable Shares.
Some of the prominent and renowned examples of a Public Limited company are Reliance Communications Limited and TATA Steel Limited etc.
It normally takes 8-10 days to register a Public Limited Company, excluding the delays carried out by government authorities.
Statutory fees are included in our package and we will be sending you the detailed invoice about the fees structure.
The validity concerns to life i.e. until the company is wound up and Certificate of Registration is surrendered.
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