In India, a Public Limited Company (PLC) is a business structure suited for large-scale operations.
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In India, a Public Limited Company (PLC) is a business structure suited for large-scale operations. Entrepreneurs who are planning for large-scale business operations can start a Public Limited Company registration in India. Unlike private companies, PLCs can raise funds from the general public by offering shares on stock exchanges. This allows them to access a wider pool of capital for growth. A Public Limited Company in India enjoys all the privileges of a corporate entity together with the features of Limited Liability. Entrepreneurs and aspiring business owners must understand what is public limited company and the registration process to obtain all the benefits.
LegallensIndia can help you start your public limited company in India with ease and efficiency. Our comprehensive services cover everything from company registration to compliance management, ensuring a smooth and hassle-free setup process for your business.
A public limited company meaning defined by its unique function, which is a form of corporate entity that permits the general public to hold ownership stakes through publicly traded shares. These shares are commonly exchanged on established stock markets, enabling a diverse group of brokers, investors, and traders to buy and sell equity. This structure allows individuals from various backgrounds to invest and hold shares in the company.
Unlike private companies, public limited companies are governed by stricter regulatory and reporting standards. In India, the law governing public limited companies is primarily outlined in the Companies Act of 2013. The public company minimum members is 7, and there is no limit on the maximum number of members /shareholders for starting a Public Limited Company.
The day-to-day operations are managed by an executive team, but the broader ownership lies with the many shareholders who invest in the companys stock. These shareholders typically have voting rights that include the ability to vote on the election of the board of directors. The board then selects the executive team tasked with managing the company's ongoing business affairs. It is important to remember to meet the minimum shareholders in public company to proceed in the functions.
Below are the fundamental characteristics of a public limited company:
Public limited companies are broadly categorised into two distinct types:
This type of public limited company has its shares actively listed and available for trading on one or more stock exchanges. This accessibility allows the public and various financial entities to buy and sell the company's shares, providing greater liquidity and exposure to a diverse pool of investors.
Unlike its listed counterparts, an unlisted public limited company does not have its shares traded on any stock exchange. As a result, its shares are not as easily transferable, and the company does not experience the same level of public scrutiny or regulatory requirements as a listed company. This category of public limited company may appeal to businesses seeking to benefit from a broader base of shareholders while avoiding the complexities of full public trading.
When planning to register a public limited company, it is important to understand and adhere to the specific rules and regulations set under the Companies Act. Here are the key requirements for forming a public limited company in India:
Registering as a public limited company brings several key benefits:
These benefits make public limited companies attractive for businesses looking to expand and attract investment.
To successfully register a Public Limited Company in India, you will need to gather and submit the following documents:
Public limited company registration involves several structured steps that adhere to regulatory requirements. Here is a detailed guide to the procedure:
Step 1: Obtain Digital Signature Certificates (DSC)
Step 2: Apply for Director Identification Number (DIN)
Use the MCA online portal to check if your desired company name is available. It is important to ensure that the name does not infringe upon any existing trademarks or is not already in use. This step is crucial as it establishes the unique identity of your company.
Once the name is approved, proceed to file the SPICe+ form. This comprehensive form is designed to cover all legalities for the incorporation of a company. Along with this form, you will need to submit the Memorandum of Association (MOA) and Articles of Association (AOA), which detail the constitution and rules governing the management of the company.
After the submission of the SPICe+ form and necessary documents, the Registrar of Companies (ROC) will review the application. Upon successful verification, the ROC issues a Certificate of Incorporation. This certificate is a legal document that marks the birth of the company and includes the company's Corporate Identification Number (CIN) and the date of incorporation.
With the incorporation certificate in hand, the next step is to apply for the company's Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN). These are essential for all tax-related transactions and compliances.
Finally, open a bank account in the name of the company. You will need the Certificate of Incorporation, MOA, AOA, PAN, and other relevant documents to set up the bank account. This account will handle all monetary transactions of the company.
Depending on the nature of the business and the specific sector it operates in, you may need additional approvals or registrations, such as GST registration, import/export code, or industry-specific licenses.
Whatever licenses or registrations you require, the experts at LegallensIndia are here to assist you in starting your public limited company in India.
Starting your public limited company registration is straightforward and efficient with LegallensIndia. With a proven track record of expert guidance and a commitment to smooth, compliant service, we streamline the entire registration process. From handling all necessary documentation, including DSC, DIN, MOA, and AOA, to ensuring your company complies with all legal requirements, our team is equipped to support you at every step.
Choose LegallensIndia to leverage our expertise and focus more on growing your business while we take care of the bureaucratic hurdles.
