Public Limited Company

Public Limited Company Registration in India

From selecting a unique company name to obtaining the Certificate of Incorporation, each stage of Public Limited Company Registration in India demands meticulous attention to detail and adherence to regulatory requirements. E Accountax Manager ensures a hassle-free experience, guiding you through every stage with precision and adherence to regulatory standards.

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What is a Public Limited Company in India?

A Public Limited Company in India is a corporate structure where ownership is distributed through shares available to the public. Governed by the Companies Act of 2013, it requires a minimum of 7 shareholders and 3 directors. Public limited company can raise capital by selling shares on stock exchanges, adhering to rigorous regulatory standards to ensure transparency and accountability.

Key Features of a Public Limited Company

Limited Liability: Shareholders' liability is limited to the extent of their investment in the company. Their personal assets are not at risk in case of the company's insolvency.
Minimum Capital Requirement: The requirement for minimum paid-up capital to incorporate a public limited company has been eliminated by Companies (Amendment) Act of 2015. There is no longer a stipulated minimum capital requirement for establishing a public limited company in India.
Perpetual Succession: A public limited company has perpetual succession, meaning its existence is not affected by the death, bankruptcy, or departure of any of its shareholders. The company continues to exist until it is formally dissolved.
Separate Legal Entity: A public limited company is a separate legal entity distinct from its shareholders. It can enter into contracts, own property, sue, and be sued in its own name.
Transferability of Shares: Shares of a public limited company are freely transferable, subject to certain restrictions imposed by the company's articles of association and relevant laws.
Public Subscription of Shares: A public limited company can raise capital from the general public by issuing shares through an initial public offering (IPO) on a stock exchange.
Minimum number of Directors: According to company law, a public limited company can be formed with a minimum of 3 directors and a maximum of 15 directors.
Minimum Shareholders/Members: Public limited company must have at least 7 shareholders or members upon incorporation. However, there is no maximum limit on the number of shareholders in a public limited company.

Difference between Private Limited Company and Public Limited Company

Aspect	Public Limited Company	Private Limited Company
Number of Members	Minimum: 7 (No maximum limit)	Minimum: 2 (Maximum: 200)
Transferability of Shares	Shares can be traded openly on the stock market according to SEBI regulations.	Shares cannot be listed on any stock exchange or traded in the open market.
Issue of Prospectus	Mandatory to issue and file a prospectus according to Companies Act, 2013 guidelines.	Cannot issue a prospectus; instead, a statement in lieu of a prospectus is issued.
Subscription from the Public	Allowed to accept subscriptions from the general public to issue shares or debentures for capital raising.	Not permitted to accept subscriptions from the general public for issuing shares or debentures to raise capital.
Allotment Subject to Minimum Subscription	Restricted from allotting shares until the minimum subscription as per prospectus is achieved.	Free to allot shares as per their articles of association without such restrictions.
Directors	Minimum: 3	Minimum: 2
Appointment of Directors	Appointment of one Director can be done through a single resolution.	Two or more Directors can be appointed through a single resolution.
Retirement of Directors	At least 2/3 Directors of the company must retire by rotation annually, with at least 1/3 retiring each year.	No such restrictions on the retirement of Directors by rotation.
Quorum	- 1000 or fewer members: 5 members - More than 1000 but less than 5000: 15 members - More than 5000: 30 members	Minimum of 2 members present is required to constitute a quorum for a meeting.
AGM	AGM must be held at the registered office or any place in the city where the registered office is situated.	AGM can be held anywhere.
Meeting	Statutory meetings are mandatory as per section 165 of the Companies Act, 2013.	No requirement for a statutory meeting as per Companies Act, 2013 provisions.

Steps to Register a Public Limited Company in India

Digital Signature Certificate (DSC): Obtain DSCs for the proposed directors, as these are required for digital filings.
Name Approval: Select a unique name for your company and get it approved by the Ministry of Corporate Affairs (MCA) by filling web form RUN.
Document Submission: Prepare and submit the Memorandum of Association (MoA) and Articles of Association (AoA) along with other necessary documents.
Filing with RoC: File the web form INC-32 along with MOA, AOA and KYC documents with the Registrar of Companies (RoC).
Certificate of Incorporation: Upon approval, receive the Certificate of Incorporation, which confirms the registration of your Private Limited Company.
Obtain PAN/TAN: PAN & TAN of the company will be issued along with incorporation certificate.

Required Documents to register a Public Limited Company in India

PAN Card of Proposed Directors and Shareholder
Identity proof (Either Passport, Aadhar card, Driving License or Voter ID) of Proposed Directors and Shareholder
Colored Passport size photo of Proposed Directors and Shareholder
Residential Proof (Either Electricity Bill, Telephone Bill or bank passbook) of Proposed Directors and Shareholder
Proof of registered office (Either Rent/Lease agreement or NOC from owner along with electricity bill) of proposed company
Memorandum of Association (MOA), Articles of Association (AOA) & Directors details (DIR-2)

Why choose us to register your Public Limited Company in India?

Expertise: We have a team of experienced professionals well-versed in company registration procedures and compliance.
Comprehensive Support: From documentation to filing and follow-ups, we provide end-to-end support throughout the registration process.
Efficiency: Our streamlined processes ensure quick and hassle-free registration of your Public Limited Company.
Transparent Pricing: We offer competitive and transparent pricing with no hidden charges.
Customer Satisfaction: We prioritize customer satisfaction and strive to deliver the best services to meet your requirements.

Post-incorporation compliance for a Public Limited Company in India

Board Meetings: Convene the first board meeting within 30 days of incorporation and hold a minimum of four board meetings every year, with a gap of no more than 120 days between consecutive meetings.
Statutory Registers: Maintain statutory registers such as the Register of Members, Register of Directors and Key Managerial Personnel, and Register of Loans and Investments.
Share Certificates: Issue share certificates to the subscribers of the Memorandum within two months from the date of incorporation.
Commencement of Business: File the declaration for commencement of business within 180 days from the date of incorporation.
Annual General Meeting (AGM): Hold an AGM within six months from the end of the financial year and file annual returns with the Registrar of Companies.
Financial Statements: Prepare and file financial statements, including balance sheet, profit and loss account, and cash flow statement, with the Registrar of Companies.
Income Tax Filings: File annual income tax returns and comply with tax audit requirements if applicable.
Other Compliances: Ensure compliance with other applicable laws and regulations, such as labor laws, environmental laws, and industry-specific regulations.

Conclusion

Establishing a Public Limited Company (PLC) presents a significant opportunity for businesses to access capital markets and broaden their shareholder base. With the flexibility to raise funds from the public through stock exchanges, PLCs can fuel their growth and expansion initiatives. However, it's crucial for PLCs to adhere to stringent regulatory requirements, maintain transparency, and uphold corporate governance standards to build trust among investors and stakeholders. By leveraging the advantages of limited liability, perpetual succession, and separate legal entity status, PLCs can embark on a path of sustainable growth and long-term success in the dynamic business landscape.

Contact us today if you are looking for Public Limited Company Registration in India with expert guidance.

FAQ

1. What is a public limited company?

A public limited company is a business structure where shares can be offered to the public and traded on the stock exchange, providing limited liability to shareholders.

2. What are the requirements to register a public limited company?

You need at least 7 shareholders, 3 directors (one Indian resident), a unique name, and a registered office address.

3. What are the benefits of a public limited company?

It allows raising funds from the public, offers limited liability, enhances credibility, and provides better access to capital markets.

4. What are the compliance requirements for a public limited company?

Regular filings with the Registrar of Companies (RoC), holding AGMs, maintaining statutory records, and adhering to SEBI regulations for listed companies.

5. Can a public limited company raise funds easily?

Yes, it can raise capital through public share issuance, debentures, or loans, making it ideal for large-scale businesses.