Public Limited Company
Public Limited Company is a type of public company (publicly held company). It is a limited (liability) company whose shares may be freely sold and traded to public (although PLC may also be privately held, often by another PLC), with a certain minimum share capital and the letters PLC after its name.
Minimum paid up capital of Rs. 5 lakhs or such higher capital as may be prescribed and Minimum number of members is 7 and maximum number of members is unlimited.
Advantages of a Public Limited Company includes:
- Raising capital through public issue of shares
- Widening the shareholder base and spreading risk
- Other finance opportunities
- Growth and expansion opportunities
- Prestigious profile and confidence
- Transfer-ability of shares
- Exit Strategy
Disadvantages of a Public Limited Company:
- More regulatory requirements
- Higher levels of transparency required
- Ownership and control issues
- More vulnerable to takeovers
- Initial financial commitment is higher
Process to create a Public Limited Company:
- Name Approval with Registrar of Companies (maximum 3 Names can be submitted)
- Preparation of Documents for Incorporation of Company
- Submit the documents to ROC
- ROC will give DIN, PAN, TAN, along with Certificate of Incorporation
- Commence your Business.
- Apply for Digital Signature Certificate
- Declaration by first subscriber(s) and first director(s).
- Memorandum of Association
- Articles of Association
- Declaration by advocate/ CA/ Cost Accountant/ CS in practice in Form INC-8.
- NOC from the owner of the property.
- Proof of Office address (Conveyance/ Lease deed/ Rent Agreement etc. along with rent receipts);
- Copy of the utility bills (not older than two months)
- In principle approval from the concerned regulator, if any.
- In principle approval from the concerned regulator, if any, it is mandatory to attach proof of identity and residential address of the subscribers.
Check List of a Public Limited Company:
- Opening a Bank Account
- Deposit of Capital & Issue of Shares
- Commencement of Business
- Intimation of Registered Office Address
- Appointing a Statutory Auditor
- Other Registrations and Compliance
- Intellectual Property Registration
- Drafting documents
- Exhibition of Company Name
- Disclosure of Directors’ interest
- Maintaining Statutory Registers & records
- Accounts and Bookkeeping
- Other noteworthy provisions