If you want to start and grow a business on a large scale, then Public limited companies could be one of the best options available.

Public Limited Company

Outline

If you want to start and grow a business on a large scale, then Public limited companies could be one of the best options available. Public Limited companies, often called PLCs, are a common type of business structure that allows a company to raise capital by issuing shares to the public.
 The Companies Act, 2013 (‘Act’) regulates the establishment and working of a public limited company. A public limited company offers shares to the general public and has limited liability.
It is a type of business entity that is owned by shareholders and whose shares are traded on various stock exchanges. Shares of public limited can be acquired by anyone, either through Initial Public Offering (IPO) or via trades on the stock market.

Features of Registering PLC's

  1. One of the main benefits of operating as a public limited company is the ability to raise large amounts of capital by issuing shares to the public.     
  2. Public limited companies also benefit from limited liability for shareholders, meaning that they are only liable for the amount of their investment in the company.
  3. Additionally, PLCs have greater access to resources, such as bank loans and government contracts, and often have a higher level of credibility with customers and suppliers.
  4. Public limited companies are subject to comprehensive regulatory oversight and compliance requirements, including financial reporting standards, corporate governance guidelines, and regulatory filings, to ensure adherence to legal and ethical standards.

Steps for Incorporation of a Company

Step 1 : Ascertaining the name

               The first step is to select a suitable name for the company. Further, the form Spice Part A shall be filed for name approval. The name you select for your business entity is not just a business name but an Identity of your Company.

Step 2 : Digital Signature Certificate (DSC)

               The Directors of a Public Limited Company must have a Class III digital signature and therefore, the signature will  be used to file the registration, ROC  compliance form, and the Income-tax returns (ITR).

Step 3 : Drafting of MOA and AOA

                Once the name is approved, the next step is the preparation of Spice Part B, the drafting of MOA and AOA.
                MOA is considered a sphere in which the company can perform its business, objectives of the company.
    It’s divided into 5 clauses:
  • Name Clause
  • Registered office Clause
  • Object Clause
  • Liability Clause
  • Capital Clause
     AOA are documents that state rules and regulations that the inner management will follow. AOA creates a contract between the company and the members which states the terms and conditions, duties, rights, and liabilities of the members.

Step 4 : Introduction of SPICE FOMRS

                 With the introduction of SPICE FOMRS, we can now apply for GST, EPF, and ESIC   in Agile Form which is submitted along with incorporation forms.

Step 5 : Pay Stamp duty and PAN and TAN fees

                Once the Forms are ready, downloaded, and signed, we need to pay Stamp  duty and PAN and TAN fees.

Step 6 : Incorporation Certificate

                 After the registration fees are paid and all the documents are verified, the Registrar will issue the Incorporation Certificate.
The date mentioned in the certificate will be the date of incorporation of the company.

Documents Required for the Incorporation

Scanned copies of:
  • PAN card & Aadhaar Card of the Directors & Shareholders
  • ID proof (Voter ID, Driving license, passport)
  • Address proof of directors (Utility Bills like telephone, Wi-fi, electricity, etc.) (Shouldn’t be before 2 months)
  • Address proof of Company (Utility Bills like telephone, Wi-fi, electricity, etc.) (Shouldn’t be before 2 months)
  • Passport Size Photograph, mobile number, and email address.
Note : All documents shall be self-certified. There is no requirement for submitting physical documents. 

Difference Between Public Limited & Private Limited Company

 

Feature

Public Limited Company

Private Limited Company

Ownership

Shares offered to the general public; traded on a stock exchange.Shares are held privately; not traded on a stock exchange.
Minimum Number of ShareholdersAt least 7 shareholders.At least 2 shareholders.
Maximum Number of ShareholdersUnlimited.Maximum of 200 shareholders.
CapitalGenerally higher; significant capital required.Generally lower; no minimum capital requirement.
Disclosure and ReportingExtensive disclosure and reporting requirements; must publish annual reports.Less stringent disclosure and reporting requirements.
Transfer of SharesShares are freely transferable on the stock exchange.Transfer of shares is restricted by consent of other shareholders.
Legal StatusLegal StatusSeparate legal entity.
Regulatory ComplianceMust comply with stringent regulatory frameworks and stock exchange rules.Less regulatory burden; not subject to stock exchange rules.
Fundraising Can raise capital by issuing shares to the public.Raises capital through private means (e.g., family, friends, venture capital).

Why Choose Udyog Buddy ?

Udyog Buddy is a team of experienced professionals, our end-to-end service model, combined with personalized support, makes the incorporation journey straightforward and stress-free. Additionally, our commitment to cost-effective solutions and time efficiency allows businesses to focus on growth and operations without unnecessary delays or financial strain. Choosing Udyog Buddy means partnering with a trusted expert dedicated to helping your business succeed from the very start.
Connect with us for any queries
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Questions that may arise ?

If you have all the documents ready and are in order then it will take no longer than 15 to 20 working days. However, it depends upon the Registrar of the Company.

A minimum of 3 Directors and 7 shareholders are required in case of Public Limited Company.

A minimum of 3 Directors and 7 shareholders are required in case of Public Limited Company.

Yes, a company can register for multiple businesses, but it depends on whether the activities are related or not. However, all the activities which are listed should pertain to the main business of the company.

Yes, however, it should be ensured by the applicant that the first word used in the company name shall be unique and not generic.

Yes, any premises, commercial, industrial, or residential where communication from MCA can be received can be used as the company’s address. A copy of the utility bill along with NOC from the owner is required to be submitted.

DIN (Document Identification Number): A unique identifier assigned to all directors. One director can hold only one DIN.

DSC (Digital Signature Certificate): An electronic form of a signature used to authenticate the identity of the signer and ensure the integrity of digital documents. DSC is used to sign the director’s documents digitally.

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Disclamer: The article provided here is solely for information purposes. This is prepared based on information provided on various forums and the same has been utilized only for information of the readers. The information presented in this article does not constitute legal or professional advice and should not be relied upon for such purposes or used as a substitute for legal advice. In case of necessity, consult with professionals.