Public Limited Company
A Public Limited Company (PLC) is a company that offers its shares to the general public and has limited liability. It is governed by the Companies Act, 2013 in India. PLCs can raise capital from the public through stock exchanges and must adhere to strict regulatory and disclosure requirements.
What is a Public Limited Company in India
A Public Limited Company (PLC) is a business structure that allows the general public to own shares of the company through stock exchanges. It is suitable for large-scale businesses looking to raise capital from a broad investor base. PLCs are governed by the Companies Act, 2013, and provide limited liability protection to shareholders.
Key Characteristics of a Public Limited Company
- Must have a minimum of three directors.
- Company name must include the word "Limited."
- Required to issue a prospectus to inform investors about its business.
- No fixed minimum share capital, allowing flexibility in financial structuring.
Types of Public Limited Company
- Listed Company: Shares are traded publicly on stock exchanges.
- Unlisted Company: Shares are not traded on stock exchanges and have fewer regulatory requirements.
Requirements for Registration of a Public Limited Company
- Minimum seven shareholders with no maximum limit.
- Minimum three directors with valid Director Identification Numbers (DIN).
- Minimum authorized share capital of Rs. 1 lakh.
- At least one director must have a Digital Signature Certificate (DSC).
- Proposed company name must be unique and comply with legal rules.
- Memorandum of Association (MOA) and Articles of Association (AOA) must be prepared.
Advantages of Public Limited Company Registration
- Easier access to capital by selling shares to the public.
- Financial flexibility with multiple fundraising options.
- Limited liability protection for shareholders.
- Opportunities for growth and expansion.
- Shareholders can buy and sell shares easily in the stock market.
Documents Required for Registration
- Identity proof (Aadhar, PAN, Voter ID) of shareholders and directors.
- Address proof of shareholders and directors.
- PAN card details of all members.
- Proof of company’s registered office address.
- Landlord’s consent letter for business premises.
- Digital Signature Certificates for designated directors.
- Memorandum of Association (MOA) and Articles of Association (AOA).
Public Limited Company Registration Procedure
Step 1: Obtain Digital Signature Certificates (DSC) for proposed directors and subscribers.
Step 2: Apply for Director Identification Number (DIN) using the SPICe form.
Step 3: Check company name availability on the MCA portal.
Step 4: File SPICe+ form along with MOA and AOA.
Step 5: Receive Certificate of Incorporation from Registrar of Companies.
Step 6: Apply for PAN and TAN for the company.
Step 7: Open a bank account in the company’s name using incorporation documents.
