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Seeking enhanced security and credibility, and are interested in listing your company’s shares, consider starting a Public Limited Company with Apki Return Team…
A Public Limited Company (PLC) offers limited liability to its members and owners, a key aspect of its corporate structure. This type of entity is particularly advantageous as it permits the raising of funds directly from the public, therefore, it has to be strictly regulated, and its mandatory to publish its Financial Report-card to its shareholders. By adhering to specific norms and regulations, a PLC can efficiently gather capital for its operations and growth. However, it’s important to note that the regulatory requirements for a PLC are significantly more stringent than those for a Private Limited Company.
A minimum of seven members and three directors are required to establish a PLC, with the notable absence of any minimum paid-up capital requirement, however, it should have an authorised share capital of a minimum of Rs. 1 Lakh.
This makes it an ideal choice for businesses with a large investor base and those aiming to engage the wider public. Additionally, the shares of a PLC are freely transferable in the market, offering greater liquidity and ease of investment for shareholders.
Furthermore, a Public Limited Company enjoys several fundamental benefits under the Companies Act, 2013, including being recognized as a Separate Legal Entity and offering Limited Liability to its shareholders. These features contribute to its appeal as a robust and flexible business structure, especially suitable for large-scale enterprises with broad public involvement.
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The first step is to obtain Digital Signature Certificates for the proposed directors of the company. DSCs are required for signing electronic documents and are necessary for filing the incorporation forms with the Ministry of Corporate Affairs (MCA).
Each proposed director of the company must have a Director Identification Number (DIN). This can be obtained by filing an application online with the MCA.
The next step is to select a unique name for the company and reserve it through the “RUN” (Reserve Unique Name) service on the MCA portal. The name should be indicative of the company’s business and should not be similar to any existing company or trademark.
Draft the MOA and AOA of the company. The MOA states the main, ancillary or subsidiary, and other objectives of the company, while the AOA lays down the rules and procedures for the routine conduct of the company.
File the application for incorporation of the company with the Registrar of Companies (ROC) through the SPICe+ form on the MCA website. This form is a comprehensive application covering company incorporation, DIN allotment, mandatory issue of PAN, TAN, GSTIN, Bank Account, and ESIC registration.
Along with the incorporation form, attach necessary documents including the DSCs, DINs, MOA, AOA, proof of registered office (lease agreement/utility bill), consent of directors (Form DIR-2), and declaration by first subscribers and directors.
Pay the requisite government fees and stamp duty based on the state in which the company is to be incorporated.
The ROC will examine the application and documents. If everything is in order, the ROC will issue a Certificate of Incorporation. This certificate acts as proof that the company has been created and includes the Company Identification Number (CIN).
Along with the incorporation process, the company will automatically be allotted PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number).
After receiving the Certificate of Incorporation, the company should open a bank account in its name to conduct business transactions.
Depending on the business activities, the company may need to obtain additional registrations like GST, Import Export Code (IEC), Professional Tax, or Shop and Establishment Act License.
PAN Card of proposed Directors
Both PAN and Aadhaar Card of all Indian Shareholders and Directors.
Business Address Proof
Either of the latest Utility Bill (Electricity, Telephone, Gas, Water) or Property Tax Bill of the registered office address. Rent agreement and NOC from the owner in case of rented property.
Aadhaar Card/ Passport of proposed Directors
Either Voter ID, Passport, or Driving License of the Shareholders and Directors.
Mail ID and Mobile number
Mail id and Mobile number of proposed Director along with Draft Articles of Association and Draft Memorandum of Association.
Latest passport size photograph of proposed Directors
Latest passport size photographs of all the Shareholders and Directors.
PLCs can raise funds by issuing shares to the public through stock markets, providing a significant advantage in terms of capital accumulation compared to private companies.
Shareholders of a PLC enjoy limited liability, meaning their personal assets are protected in the event of the company’s financial failure. Their liability is limited to the amount invested in the company.
Shares in a PLC can be easily bought and sold, providing liquidity for shareholders and allowing the company to attract a wider range of investors.
A PLC is a separate legal entity from its owners, capable of entering into contracts, owning property, and being liable for its own debts.
Being listed on a stock exchange enhances a company’s visibility and prestige, which can lead to increased sales and profitability.
Public limited companies often attract high-quality management and skilled employees due to their size, resources, and brand value.
PLCs continue to exist even if the ownership or management changes, providing stability and uninterrupted operation.
Shareholders in PLCs have a say in the company’s management, typically through voting rights proportional to their shareholdings.
PLCs often have a larger economic scale, allowing for more efficient operation, greater market reach, and enhanced bargaining power with suppliers.
While stricter regulatory requirements can be challenging, they also lead to greater transparency and accountability, potentially increasing investor confidence.
We believe in complete hand holding of our client, we will assign a personal manager to help you complete the entire process of company registration.
We will assist you in following areas:
There are few compliances which needs to be done as per the schedule of the MCA, major activities are listed below for your reference, as our time will also help you out not to miss any of the compliances.
This is a one-time activity, to be done once every year.
Now-a-days, all the companies getting registered in India, need to obtain Business Commencement Certificate within 180 days of its incorporation. It’s a One Time Activity. For this compliance, the directors are required to deposit the Paid-up capital in the account of the company, and share the Bank statement to the MCA for verification purposes.
This is a one-time activity, to be done once every year. As per Income Tax Laws ITR-6 needs to be filed by the Companies alongwith Tax Audit report (if applicable) to be digitally signed.
As per Companies Act, within 30 days of incorporation, the company is required to appoint the C.A. for conducting the ROC audit.
This is a one-time activity, to be done once every year. At the end of the financial year, when income tax return has been filed and ROC Audit report has been prepared, the Annual Return under Form AOC-4 & Form MGT-7 are required to be uploaded on the MCA portal which are required to be digitally signed by Director’s and C.A. who has conducted the Audit.
A Public Limited Company (PLC) is a company whose shares can be publicly traded, typically on a stock exchange. It offers limited liability to its shareholders and is subject to specific regulatory and reporting requirements.
The key differences include the ability to sell shares to the public, larger minimum numbers of shareholders, more stringent regulatory requirements, and higher transparency in operations for PLCs.
In India, a PLC requires at least seven shareholders, three directors, and there’s no minimum capital requirement. It must also comply with the regulations under the Companies Act, 2013.
Yes, one of the main features of a PLC is that it can list its shares on a stock exchange, allowing it to raise capital from public investors.
Shareholders in a PLC have limited liability, meaning their liability is limited to the extent of their investment in the company.
Yes, PLCs face stricter compliance and regulatory requirements, including regular financial reporting, adherence to corporate governance norms, and transparency in operations.
A PLC is managed by a Board of Directors, elected by the shareholders. The Board is responsible for the overall management and strategic direction of the company.
Yes, one of the advantages of a PLC is the ease of transferability of shares. Shares can be bought and sold on the stock market if the company is listed.
Advantages include access to capital markets, limited liability for shareholders, enhanced credibility and brand recognition, and the ability to spread risk across a larger group of shareholders.
In the event of bankruptcy or dissolution, a PLC is treated as a separate legal entity. Shareholders’ personal assets are typically not at risk; only the amount invested in the company can be lost.
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