Description

Public Limited Company: Unlocking Unlimited Growth Potential

A Public Limited Company (PLC) is a prominent business structure that offers entrepreneurs the opportunity to raise capital from the general public. It is a company registered with the Ministry of Corporate Affairs (MCA) and operates under the framework of the Companies Act, 2013. This structure is ideal for businesses aiming for large-scale operations, national or international expansion, and public investment.

Unlike private companies, public limited companies can offer shares to the public and are often listed on recognized stock exchanges, making them a preferred choice for large businesses and startups looking to scale rapidly.

Key Features of a Public Limited Company

Shareholders

• Minimum: 7 shareholders are required to incorporate a public limited company.
• Maximum: There is no upper limit to the number of shareholders.

Limited Liability

• Shareholders are only liable up to the amount unpaid on their shares.
• Personal assets remain protected, although shareholders are accountable for any fraudulent acts.

Paid-up Capital

• A minimum paid-up capital of ₹5 lakhs is required, though it may vary as per legal updates.

Separate Legal Entity

• The company enjoys a distinct legal identity from its shareholders and directors.
• It can own property, enter contracts, sue, or be sued independently.

Perpetual Succession

• The company continues to exist regardless of changes in its membership due to death, insolvency, or resignation.

Board of Directors & Committees

• Managed by a Board of Directors, supported by an Audit Committee and other governance bodies for transparency and regulatory compliance.

Public Investment via Prospectus

• A prospectus must be issued to invite public investment, detailing the company’s financials, management, and objectives.
• This enhances transparency and trust among investors.

Stock Market Trading

• Shares of a listed Public Limited Company can be traded on recognized stock exchanges, enabling liquidity and market participation.

Name Requirement

• All Public Limited Companies must include the words “Limited” or “Public Limited” at the end of their name.

Advantages of a Public Limited Company

1. Unlimited Fundraising Potential
   Raise capital from the public through share issuance — ideal for business expansion and infrastructure growth.
2. Market Reputation & Credibility
   PLCs gain instant credibility in the market, attracting customers, investors, and partnerships.
3. Liquidity for Shareholders
   Publicly traded shares allow easy entry and exit for investors.
4. Limited Risk
   Shareholders enjoy limited liability, reducing personal financial risk.
5. Enhanced Governance
   With mandatory audits and board oversight, a public company ensures better corporate governance and accountability.

Considerations Before Incorporation

• Compliance Burden: More regulatory and disclosure obligations compared to private companies.
• Cost of Listing: Initial and ongoing listing costs for companies planning to go public.
• Loss of Control: Promoters may lose significant control due to diluted ownership.
• Transparency Requirement: Must publish financial statements and adhere to SEBI regulations if listed.

Who Should Opt for a Public Limited Company?

A Public Limited Company is best suited for:

• Large enterprises planning to raise capital from the general public
• Companies aiming to get listed on the stock exchange
• Businesses requiring large-scale funding for expansion
• Promoters seeking higher brand visibility and market presence

Register Your Public Limited Company with GST Suvidha Centre

GST Suvidha Centre offers comprehensive assistance in Public Limited Company Registration, ensuring compliance with all legal and regulatory norms.

Our Services Include:

• Name Reservation (RUN)
• DIN & DSC for Directors
• Drafting MoA & AoA
• Filing Forms INC-32/SPICe+
• PAN & TAN registration
• Assistance with prospectus and SEBI listing (if applicable)

Get Expert Support for Public Company Registration

Launch your Public Limited Company with confidence through GST Suvidha Centre — India’s trusted name in business registrations.

Visit your nearest GST Suvidha Centre or book your consultation online today!

 

Required Documents

• Proof of identity of all the shareholders and directors
• Proof of address of all the directors and the shareholders
• PAN number of all the shareholders and directors
• Utility Bill of the proposed office i.e. proposed registered office for the company
• NOC (No Objection Certificate) from the landlord where the office of the company will be situated
• Director Identification Number (DIN) of all the directors
• Digital Signature Certificate (DSC) of the directors
• Memorandum of Association (MOA)
• Articles of Association (AOA).