Public Limited Company Registration
Public Limited Company abbreviated as PLC is the business entity which offers its shares to the public or whose securities are traded in the stock market. Such companies get access to substantial capital through the public issue of shares. Minimum three Directors, seven shareholders and a registered office are required to incorporate a Public Limited Company in India. In a Public Limited Company, the members have to follow strict compliances as compared to a Private Limited Company. If you also want to start a Public Limited Company, then you have landed on the right platform. This piece of information will give comprehensive knowledge about the procedure, eligibility, documents required for Public Limited Company Registration.
Key Characteristics of Public Limited Company
These are some fundamental traits of a Public Limited Company which clearly defines the nature of this business model:
- Limited Liability: All the members or shareholders of a Public Limited Company has to bear a limited liability. It implies that if a company incurs losses under any circumstances, then its shareholders are liable to pay the debts in correspondence to the nominal value of their shares.
- Total Number of Members: It requires a minimum of 7 members to establish a Public Limited Company in India. There is no limit on the maximum number of members under the provisions of Companies Act, 2013.
- Minimum Paid-up Capital: A Public Limited Company must have a minimum Paid-Up Capital of INR 5,00,000 or a higher amount which is amended from time to time.
- Company Name: It is essential to add “Ltd” in the suffix of every Public Limited company’s name.
- Perpetual Succession: Public Limited Companies are separate legal entities from their members. PLCs keep on existing in the eyes of the law irrespective of death, bankruptcy, insanity or insolvency of its members. It results in the perpetual succession of the company.
Documentation plays a pivotal role in the Registration process of a Public Limited Company. Affix these recent and valid documents with your application:
- Two passport-sized photographs of Directors
- Identification proof of the Directors and shareholders
- PAN Card of each Director and shareholder
- Residential proof of the proposed office (Water Bill, Utility Bill, Rental Agreement etc.)
- NOC (No Objection Certificate) from the landlord where the office is situated
- DIN and DSC of all Directors
- Memorandum of Association (MOA) & Article of Association (AOA)
Steps to establish a Public Limited Company in India
Follow the simple steps given below to register a Public Limited Company online:
- Acquire DSC and DIN: To fill the company incorporation form on the official MCA portal, the applicant must first obtain DSC followed by proceeds for DIN application.
- Name Approval: The next step is to procure name approval by applying in e-Form RUN and check the name’s availability. At this stage, a company can propose two names along with the prescribed fees of INR 1000.
- Filling Incorporation Form: Now fill-up one single application in Form SPICE 32 for the incorporation of Public company and attach all the necessary documents.
- PAN, TAN and Bank Account Application: Once the new Public Limited Company obtains Certificate of Incorporation, one can apply for PAN & TAN and Bank Account opening.
Public Limited Company is undoubtedly an efficient business model from which one can yield various benefits. However, it is imperative to strictly adhere to the compliances under Companies Act, 2013 to sustain the business in future.
This blog has been contributed by SwaritAdvisors who is a legal & financial services provider with free consultancy like- Private Limited Company Registration, Nidhi Company Registration, FSSAI License, NBFC License, Limited Liability Partnership Registration, Public Limited Company Registration, MSME Registration, etc.