Public Limited Company Registration in India
Empower your business ambitions: Register your Public Limited Company today and set the stage for unlimited growth and public trust!
Introduction
A Public Limited Company (PLC) in India is designed for businesses that require significant capital investment, usually sourced from the public. This structure allows a company to sell its shares to the public through a stock exchange or via initial public offerings (IPO). Registering as a Public Limited Company not only supports broader capital accumulation but also enhances transparency and credibility.
Eligibility and Requirements
To form a Public Limited Company in India, certain criteria must be met:
01
Minimum Number of Members: A Public Limited Company must have at least seven members (shareholders), and there is no limit on the maximum number of members.
02
Minimum Number of Directors: At least three directors are required, and at least one of them must be a resident of India.
03
Minimum Share Capital: A minimum paid-up capital of ₹5 lakh or such higher amount as prescribed under the act.
04
Name: The name of the company must end with 'Limited’.
Steps for Registration:
Digital Signature Certificate (DSC)
Directors must obtain digital signatures which are used for filing forms electronically.
Director Identification Number (DIN)
All directors should have a DIN.
Name Approval
Application for the company name approval must be filed with the Ministry of Corporate Affairs (MCA). The name should reflect the business and end with 'Limited'.
Incorporation Application
File the SPICe+ form along with linked forms for incorporation. This form integrates multiple applications like DIN, mandatory issue of PAN, TAN, GSTIN, Bank account, etc.
Memorandum of Association (MoA) and Articles of Association (AoA)
MoA states the main and ancillary objects of the proposed company; AoA contains the rules and procedures for the routine conduct of the company.
ROC Fees and Stamp Duty
Pay the requisite fee and stamp duty based on the state in which the company is registered.
Issuance of Certificate of Incorporation
Upon verification, the Registrar of Companies (RoC) will issue a Certificate of Incorporation, after which the company can start its business operations
Advantages of a Public Limited Company
01
Ability to Raise Capital: Public Limited Companies can raise capital from the public through the sale of shares.
02
Limited Liability: The liability of each shareholder is limited to the amount invested in the company.
03
Separate Legal Entity: The company has its own legal identity separate from its members, allowing it to own property, incur debts, sue, or be sued in its own name.
04
Public Trust: Trading on a stock exchange increases consumer and investor trust and visibility.
05
Transferability of Shares: Shares of a Public Limited Company are freely transferable, providing more liquidity to its shareholders.
Post-Incorporation Obligations
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Post-registration, a Public Limited Company must comply with various legal and procedural requirements including:
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Statutory Meetings: Hold statutory meetings and file returns with the RoC.
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Regular Filings: Compliance with annual filings, disclosures under SEBI regulations, and other statutory obligations.
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Governance and Audits: Adhere to strict corporate governance norms and conduct regular audits.
Setting up a Public Limited Company involves intricate planning and adherence to regulatory requirements. It's typically suited for large-scale businesses due to the ability to raise significant capital from the public and the financial markets.