In India, a Public Limited Company (PLC) is designed for large-scale business operations. This business structure is ideal for entrepreneurs aiming to raise capital from the general public by listing their shares on stock exchanges. At Mytaxwala, we deliver end-to-end support for Public Limited Company registration in India, ensuring a smooth setup while fully complying with the Companies Act, 2013 and other regulatory requirements
A Public Limited Company is a corporate entity that allows shares to be offered and traded among the public on recognized stock exchanges. Key aspects include:
● Public Ownership: Shares are available for purchase by any member of the public.
● Regulatory Oversight: PLCs are subject to stringent disclosure, compliance, and reporting standards.
● Separate Legal Entity: The company operates as a distinct legal entity, with its own rights and liabilities, separate from its shareholders.
● Management Structure: A board of directors, elected by a wide body of shareholders, governs the company’s strategic direction and day-to-day operations.
In India, a PLC must have at least seven shareholders and a minimum of three directors, with each director holding a valid Director Identification Number (DIN).
● Board of Directors:
A minimum of three directors is required, with no upper limit. The board plays a vital role in strategic planning and management oversight.
● Company Name:
The name must conclude with “Limited” to indicate its public status and accountability. This distinguishes the entity from privately held companies.
● Prospectus Requirement:
Public limited companies must issue a prospectus, detailing their financial health, operational activities, and future plans to potential investors.
● Paid-Up Capital Flexibility:
While there is no strict minimum share capital mandated for registration, companies define an authorized share capital to suit their operational and strategic needs.
● Share Transferability:
Shares of a PLC are freely traded, providing liquidity and ease of ownership transfer on stock exchanges.
Public Limited Companies can be broadly categorized into:
● Listed Companies:
These companies have their shares traded on public stock exchanges, providing broad access to capital from investors, brokers, and traders.
● Unlisted Companies:
In these companies, shares are not actively traded on an exchange. They enjoy regulatory advantages with fewer public disclosure requirements, which may be preferable for businesses seeking a more controlled environment.
When registering a public limited company in India, the following key requirements must be met:
● Minimum Shareholders:
At least seven shareholders are required with no upper limit on the total number.
● Board of Directors:
A minimum of three directors must be appointed, and each must have a valid DIN. At least one director must be an Indian resident.
● Authorised Share Capital:
The company must set an authorised share capital, with a minimum threshold of Rs. 1 lakh, providing flexibility in capital structure.
● Digital Signature Certificate (DSC):
One or more directors must obtain a DSC for submitting all documents electronically through the Ministry of Corporate Affairs (MCA) portal.
● Company Name:
The proposed company name must be unique and comply with MCA guidelines.
● Foundational Documents:
Key documents include the Memorandum of Association (MOA) and Articles of Association (AOA), along with statutory forms like DIR-12.
Registering a Public Limited Company offers several advantages:
● Easier Access to Capital:
Ability to raise funds through public equity, allowing for significant investment to fuel growth and expansion.
● Limited Liability Protection:
Shareholders’ liability is restricted to their investment, protecting personal assets from business risks.
● Enhanced Credibility:
A PLC status boosts the company’s credibility among investors, customers, and financial institutions.
● Liquidity:
Easy share trading on the stock market increases liquidity and provides opportunities for exit strategies.
● Growth Potential:
The structure supports robust growth strategies and can attract top-tier investors.
Despite the advantages, there are some drawbacks to consider:
● Compliance Burden:
PLCs face extensive regulatory and disclosure requirements, including regular audits, annual filings, and detailed financial reporting.
● Complexity of Setup:
The incorporation process and ongoing regulatory demands are more complex compared to smaller business structures.
● Share Transfer Restrictions:
Although shares are traded publicly, certain transfer restrictions may apply based on the company’s Articles of Association.
● Public Disclosure:
Financial and operational information is publicly available, which may affect privacy.
At Mytaxwala, we streamline the entire public limited company registration process through a structured, step-by-step approach:
Prepare the following documents to ensure a smooth registration process:
● Identity and Address Proof:
For all shareholders and directors (PAN card, Aadhaar, Passport, or Voter ID).
● Office Address Proof:
Recent utility bills, rent agreement, or property ownership documents.
● Digital Signature Certificates (DSC):
For all designated directors.
● Foundational Documents:
Memorandum of Association (MOA) and Articles of Association (AOA).
● Additional Statutory Forms:
Include forms such as DIR-12 and SPICe+ forms as required by the MCA.
At Mytaxwala, we understand that starting a Public Limited Company is a significant step that involves meticulous planning and strict adherence to legal requirements. Our services include:
● Expert Guidance:
Our team of professionals assists in every aspect of registration, from obtaining DSCs and DINs to drafting your MOA and AOA.
● Comprehensive Support:
We handle the paperwork, regulatory filings, and follow-up procedures to ensure your company is set up efficiently.
● Affordable Pricing:
Competitive and transparent pricing with no hidden charges.
● Timely Processing:
Fast and efficient service ensures your company is incorporated without unnecessary delays.
● Post-Incorporation Assistance:
Beyond registration, we help with ongoing compliance, including annual filings and other statutory obligations.
Get Started with Mytaxwala
Kickstart your business journey with a Public Limited Company that’s built for growth and success. Contact Mytaxwala today to begin your registration process and take advantage of our expert services, ensuring your company is established with credibility and in full compliance with Indian regulations.