Public Limited Company
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.
What is Public Limited Company?
A public limited company 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 minimum members in public company 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.
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 minimum members in public company 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.
Requirements for Registration of a Public Limited Company
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:
- Minimum Shareholders: The minimum members in public company to form a PLC is seven shareholders, with no limit on the maximum number.
- Board of Directors: A minimum of three directors is required to establish a public limited company. Each director must possess a valid Director Identification Number (DIN).
- Authorised Share Capital: The company should have a minimum authorised share capital of Rs. 1 lakh to meet the initial financial requirements for registration.
- Digital Signature Certificate (DSC): The registration process includes electronic submission of documents. Therefore, a Digital Signature Certificate of at least one director is necessary for authenticating documents submitted electronically.
- Company Name: The proposed name of the company must comply with the provisions of the Companies Act and Rules, ensuring it is unique and not already in use.
- Foundational Documents: Key documents required include the Memorandum of Association (MOA) and Articles of Association (AOA). Additionally, Form DIR-12 must be duly filled to register the details of the directors.
Documents Required for Public Limited Company Registration
To successfully register a Public Limited Company in India, you will need to gather and submit the following documents:
- Identity Proof for Shareholders and Directors: Acceptable forms of identification include Aadhar cards, PAN cards, or voter IDs for all shareholders and directors.
- Address Proof for Shareholders and Directors: Documents proving residence are required for all members involved.
- PAN Card Details: These are needed for all directors, shareholders, and members of the company.
- Company Office Address Proof: This can be a recent utility bill (not older than two months) that confirms the location of your company? office or business premises.
- Landlord’s Consent Letter: A letter from the landlord of your business premises giving permission for your company to operate from that location.
- Digital Signature Certificates (DSC): Required for all designated directors to authenticate documents digitally.
- Foundational Documents: Copies of the company’s Articles of Association (AOA) and Memorandum of Association (MOA).
