Public Limited Company (PLC)?
A Public Limited Company (PLC) in India is a large corporate entity whose shares are publicly traded, offering investors limited liability and the potential for significant capital raisingA Public Limited Company operates under the Companies Act, 2013 and must have at least seven shareholders, but there is no cap on the number of shareholders.
- What is a Public Limited Company (PLC)?
- Explain PLC as a corporate structure allowing ownership by the general public through shares traded on stock exchanges.
- Highlight its separate legal identity, limited liability for shareholders, and suitability for large-scale business ventures.
- Mention governance by the Companies Act, 2013 and stricter regulatory requirements compared to private companies.
- Key Eligibility & Requirements
- Minimum 7 shareholders and 3 directors.
- Minimum authorized share capital (generally ₹1 lakh minimum, though often higher for practical reasons).
- Digital Signature Certificate (DSC) required for directors.
- Company name must end with “Limited” or “Ltd”.
- Documents required include Memorandum of Association (MOA), Articles of Association (AOA), identity/address proofs, and DIN for directors.
- Documents Required
- Identity and address proofs for all directors and shareholders.
- PAN and Aadhaar for directors and shareholders.
- Proof of registered office.
- DSC for at least one director.
- MOA and AOA outlining company objectives and rules.
- Step-by-Step Registration Procedure
- Obtain DSC for directors.
- Apply for DIN for directors.
- Check and reserve the company name via MCA portal.
- File incorporation documents (SPICe+ form) online along with MOA, AOA, and other required forms.
- ROC reviews and issues the Certificate of Incorporation containing CIN.
- Apply for company PAN and TAN.
- Open corporate bank account.
- Benefits of Registering a Public Limited Company
- Ability to raise capital from the public through equity shares.
- Limited liability for shareholders.
- Enhanced credibility and corporate governance.
- Easier access to funding and growth opportunities.
- Perpetual succession irrespective of ownership changes.
- Post-Registration Compliance
- Maintain statutory registers.
- Hold annual general meetings (AGMs).
- File annual returns and financial statements with ROC.
- Adhere to Securities and Exchange Board of India (SEBI) regulations if listed.
- GST and other tax registrations as applicable.
FAQs
Public Limited Companies are suited for businesses that want to access public capital markets, allowing large-scale funding and growth but with higher compliance and transparency requirements.
Private Limited Companies are better for closely-held businesses emphasizing control, flexibility, and lower regulatory hurdles, often preferred by startups and family-owned businesses.
The timeline for Public Limited Company registration is typically 15-20 days, and for Private Limited Company around 10-15 days. The cost for Public Limited Company
Legal and financial advisory support ensures that a company complies with all regulatory requirements, including annual filings, audits, tax returns, and Board or shareholder meeting documentation. Expert advisors like Chartered Accountants and Company Secretaries help manage these compliances efficiently to avoid penalties and enable smooth business operations.