Public Limited Company in India: Features, Benefits, and Registration Procedures

What is a Public Limited Company?

Public Limited Company Definition:

A Public Limited Company (PLC) is a corporate entity whose shares are publicly traded on the stock exchange. It performs under the provisions of the Companies Act, 2013. By offering shares to the general public, a PLC enables investors to participate with limited liability. These shares can be purchased through an Initial Public Offering (IPO).

Unlike private limited companies, Public Limited companies must be compliant with stricter regulatory requirements, including extensive financial reporting and transparency obligations toward shareholders and regulatory authorities. With a larger shareholder base and greater capital-raising potential, public limited companies are typically larger in scale compared to private limited businesses.

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How do Public Limited Companies Work?

Public Limited Companies (PLCs) in India can operate in two ways—they may choose to be listed on the stock exchange or remain unlisted, depending on their business objectives. However, once a company is listed, it is required to submit annual financial reports to ensure transparency and maintain trust among investors and stakeholders.

Unlike private companies, a Public Limited company's existence is not affected by changes in its shareholders. Regardless of their ability to raise capital through the stock market, PLCs are subject to stricter regulatory oversight to ensure compliance and accountability.

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What are the requirements to start a Public Limited Company?

To establish a Public Limited Company, compliance with the Companies Act 2013 is essential. Below is a list of requirements to start the registration process:

• A Public Limited Company must have at least seven shareholders to proceed with company formation.
• A minimum of three directors must be appointed to manage company operations.
• Allocate at least ₹5 lakh as the initial share capital for registration.
• One of the directors must obtain a DSC along with self-attested copies of identity and address proofs.
• All appointed directors must secure a DIN.
• Submit an application for name approval, ensuring it aligns with regulatory guidelines.
• Draft and file an application defining the company’s primary objectives after incorporation.
• Provide essential documents, including the Memorandum of Association (MoA), Articles of Association (AoA), Form DIR-12, and other required forms.
• Pay the applicable registration fees as per the Registrar of Companies (ROC) guidelines.
• Once approved by the ROC, apply for the Business Commencement Certificate to officially begin operations.

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Why is a Public Limited Company the right choice for your business?

The unique characteristics of a Public Limited Company set it apart from other business structures. Here are the major benefits it provides:

• Limited Liability Protection: Shareholders’ personal assets remain safeguarded, as their liability is limited to the amount invested, protecting them from corporate debts and financial risks.
• Easy Share Transferability: Shares can be freely traded on stock exchanges, offering investors greater liquidity and flexibility in managing their investments.
• Government Support & Incentives: PLCs often benefit from government schemes, subsidies, and incentives designed to encourage business expansion and economic growth.
• Professional Governance: A board of directors composed of experienced professionals oversees operations, ensuring strategic decision-making and effective business management.
• Greater Capital-Raising Opportunities: By issuing shares to the public, PLCs can attract a wider pool of investors, making it easier to raise substantial funds for growth and expansion.

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Documents required for the Public Limited Company registration

To register a Public Limited Company, the following key documents must be submitted:

• Memorandum of Association (MoA)
• Articles of Association (AoA)
• Director Identification Number (DIN) for all directors
• Digital Signature Certificates (DSC) for directors
• Statutory Forms: DIR-12, INC-7, and INC-22
• Identity & Address Proof of all directors
• Registered Office Address Proof
• Declaration of Compliance with the Companies Act, 2013
• Board Resolution Approving Company Incorporation
• Recent Bank Statements (last two months)
• Company PAN Card
• TAN (Tax Deduction/Collection Account Number)
• Certificate of Incorporation (COI) issued by the Registrar of Companies (ROC)
• Business Commencement Certificate (if applicable)
• Any other documents as required by the ROC or regulatory authorities.

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How to register a Public Limited Company

Here’s a step-by-step guide to registering a Public Limited Company:

• Step 1: Obtain a Director Identification Number (DIN) for all directors through the Ministry of Corporate Affairs (MCA) portal.
• Step 2: Obtain a Digital Signature Certificate (DSC) for directors, as it is required for digitally signing official documents.
• Step 3: Draft the Memorandum of Association (MoA) and Articles of Association (AoA), outlining the company’s objectives, rules, and regulations. These must be submitted to the Registrar of Companies (ROC).
• Step 4: Apply for company name approval from the ROC, ensuring compliance with naming guidelines.
• Step 5: Prepare and file the necessary incorporation documents, including:
  • Form INC-7 (Application for Incorporation)
  • Form INC-22 (Proof of Registered Office Address)
  • Form DIR-12 (Details of Directors)
• Step 6: Complete the payment of registration fees online.
• Step 7: The ROC will verify the submitted documents. Upon successful verification, a Certificate of Incorporation (COI) will be issued.
• Step 8: After receiving the COI, the company can commence business operations.
• Step 9: Finally, apply for a Certificate of Commencement, which is mandatory to officially begin business activities.

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