Public Limited Company Registration

Overview

A Public Limited Company (PLC) Registration is essential for businesses that want to grow, attract significant investments, and increase their presence in the market. As per the Companies Act, 2013, a public limited company PLC works by regulating its shares to the general public, thereby publishing its true financial health to its shareholders with limited liability. With this registration, you can avail numerous unique benefits, such as raising money by selling shares to the public or protecting shareholders by ensuring the company exists even if owners or managers change. Whether you are a new start-up or an already established business to expand, understanding the PLC registration process can be a crucial step to thrive in the Indian market.

Characteristics of a Public Limited Company

Here are some of the distinguishing characteristics that may be helpful to expand businesses in India

• Shared Capital

  A public limited company is not required to have a minimum paid-up capital. However, it should have an authorised share capital of a minimum of Rs 1 lakh

• Limited Liability

  It requires a minimum of seven shareholders to form a public company in India. Although there is no maximum limit on the number of shareholders in a public company.

• Prospectus

  A prospectus is a comprehensive statement of the affairs of the company issued by a public limited company for its public.

• Number Of Members

  As per the provisions of the Companies Act, 2013, to start a public limited company, a minimum number of members in a public company requires 3 directors and a maximum of 15 directors.

• 5. Name

  For all public limited companies in India, it is mandatory to add the word ‘limited’ after their name.

Benefits of Public Limited Company Registration

    A Public Limited Company (PLC) helps a business grow, attract capital, and build a credible presence in the market. Here are the major advantages of getting registered as a PLC:

1. Access to Capital

   • Public Share Offering: With this registration, one can raise large amounts of capital by issuing shares to the public, enabling substantial investments in business expansion, research, and development.
   • Investor Attraction: Listing on stock exchanges makes public companies attractive to a wide range of investors, including institutional and retail investors

2. Limited Liability

   • Risk Mitigation: Shareholders’ liability is restricted to the amount invested in the company’s shares, protecting personal assets from business debts and liabilities.

3. Perpetual Succession

   • Continuity: The company’s existence is not affected by changes in ownership or management, ensuring stability and longevity.

4. Enhanced Credibility

   • Market Trust: By obtaining a Public limited status, these companies enhance their reputation and trustworthiness among customers, partners, and investors, facilitating better business opportunities

5. Transferability of Shares

   • Liquidity: Shares of a PLC entity can be easily bought and sold on stock exchanges, providing liquidity to investors and enabling them to exit their investments conveniently.

6. Tax Benefits

   • Tax Advantages: With a PLC registration, a business can be eligible for certain tax deductions and incentives.

7. Enhanced Corporate Governance

   • Structured Management: PLC adheres to stringent corporate governance standards, promoting transparency, accountability, and effective management practices.

Process of Public Limited company Registration

A Public Limited Company (PLC) helps you grow, raise public capital, and build a credible presence in the market. Here is an easy-to-understand guide to the process:  

1. Name Reservation 

• Choose a unique and suitable name for your company and reserve it with the appropriate government authority. 

• Make sure that no other company is using the same name.

•  Reserving the name helps you avoid legal problems related to trademark issues or name duplication.  

2. Preparation of Documents 

• Collect and prepare all the necessary documents, such as the Memorandum of Association (MoA) and Articles of Association (AoA). 

• These documents explain your company’s structure, goals, and internal rules. 

• Ensure that your documents are accurate for a smooth registration process. 

3. Submission of Application 

• Submit the registration application and all required documents to the Registrar of Companies (ROC) in India. 

• This step includes filling out the necessary forms and ensuring all the information you provide is correct and complete. 

4. Payment of Fees 

• Pay the required registration and licensing fees set by the regulatory authorities. 

• The public limited company fees can vary depending on the region and the size of your company.

•  Budgeting for these costs is important to prevent any delays in the registration process. 

5. Verification and Approval 

• The regulatory authority will review your application and documents to ensure they meet all the rules and are accurate.

• This step might include additional questions or requests for more information. 

• Ensuring all your details are correct and defining the public limited company standards can speed up the approval process.  

6. Issuance of Certificate 

• Once your application is approved, the regulatory body will issue the Certificate of Incorporation. 

• This certificate officially recognizes your Public Limited Company. 

Documents Required for Public Limited Company Registration

Public Limited Company Registration Fees

Taxlegit for Public Limited Company Registration