Meaning of Public Limited Company
According to the Company Act 2013, a Public Limited Company refers to the company which can offer shares to the public and has defined liability.
A public limited company can offer its shares to the public either via (IPO) initial public offering or trading platform like the stock market.
Everyone is allowed to acquire the shares offered by PLC.
A Public Limited Company rigidly adheres to the regulations and reveals its accurate financial status to its shareholders.
Advantages
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Limited Liability Protection
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Better image & credibility
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Easy to raise funds and loans
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Listing on Stock Exchanges
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Favorite Business structure for Investors
Minimum Requirements
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Minimum Three Directors
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Minimum Seven Members
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No Minimum Capital Required
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Maximum Fifteen Directors
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One Director shall be Indian resident
Suitability & Popularity
A public company is suitable for medium and large-sized businesses that want to raise equity capital from the public.
Due to its various advantages, the public limited company is one of the most popular legal entities among medium and large-size
companies in India.
Characteristics of Public Limited Company
To understand the concept of PLC better, let us check its characteristics which are as follows: Let us have a look at the benefits of establishing a public limited company.
- Directors: Under Companies Act, 2013 provisions, a public limited company must have at least 3 directors.
- Paid-up capital: no minimum capital is required to form a Public Limited Company
- Prospectus Under the Companies Act, 2013, a public limited company must issue a prospectus that showcases the company’s business affairs, to the public.
- Name As per Companies Act, 2013, it is mandatory for all the public companies to end their name with the word “Limited”.
- Limited Liability Public Limited Company limits the liability of each shareholder by making the owners jointly & severally liable for the business’s debts.
Benefits of Public Limited Company Registration in Gorakhpur
- Additional Capital Shares offered to the common public in large, allowing everyone to invest in the company, bring additional capital for the company.
- Increased Popularity Listing on a stock market platform increases the popularity of the PLC’s business among the traders dealing in mutual funds, hedge funds, etc which further opens up avenues for business opportunities for the Company.
- Divided Risk The risk of the market gets divided with the allotment of shares among the general public in large.
- Success and Business Expansion Divided risk, increased publicity and additional capital together lead to the opportunities for business expansion & success and investment in new profitable projects.
Requirements for the Incorporation Public Limited Company
Companies Act, 2013 has listed the following requirements for the incorporation of a Public Limited company
- Minimum 3 Director and 7 Members: Minimum 3 Directors and 7 Members are required to incorporate Public Limited Company.
- PAN Card: Self-attested PAN Card of Members and Directors.
- Identity Proof of Directors: Self-attested ID proof of Members and Directors- (Anyone out of the following -Valid Passport/Voter ID/Aadhar Card/Valid Driving License)
- Address Proof: Self attested Address proof of the Members and Directors (Any one out of the following - Bank Statement/ Electricity Bill/ Telephone Bill/ Mobile Bill which and it should be not older than 2 months
- Passport Size Photo 2-2 Passport Size Colored Photos of Members and Directors.
- Business Address Proof (Owned/Rent/Leased): NOC from the Owner of Property/Property Papers (Title Deed)/Utility Bill (Either Electricity Bill or Mobile Bill or Telephone Bill) (Should Not be Older than 2 Months)
Information Required
- Authorized and Paid-up Share Capital of the Proposed Company and Number of Shares Subscribed by Members
- Place of Birth and Duration of Stay of Members and Directors at Present Residential Address.
- Occupation of Members and Directors.
- Proposed Object/Business of the Proposed Company.
- Educational Qualification of Members and Directors.
- Email IDs and Contact Number of Members and Directors.
Process of Public Limited Company Registration in Gorakhpur
The Ministry of Corporate Affairs vide its notification dated 18th February 2020 effective from 23rd February 2020 has further amended the Companies (Incorporation) Rules, 2014 thereby substituting the old Form INC-32 (SPICe) with web service SPICe+ along with certain other amendments.
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1
An application for Name Reservation.
The first step is to make an application for reservation of name which shall be reserved by using the web services (SPICe+)
available at www.mca.gov.in along with the specified fees. Before Applying for the name, kindly check that the name is available
on MCA as well as no trademark. Is there no such name under the Class of work you are going to apply.
The new integrated form consists of two parts i.e. PART A and Part B. The Name(s) of a company can be reserved in Part A of SPICe+.
In case the applicant wants to apply for name, incorporation, and other integrated services together,
he can do so together by filling necessary information in Part A and Part B.
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2
Fill Part B of SPICe+
The second step is to fill the Part B of SPICe+ for registering the Company.
The said form contains various sections that allow you to save and modify information if required.
The new integrated form consists of two parts i.e. PART A and Part B. The Name(s) of a company can be reserved in Part A of SPICe+.
In case the applicant wants to apply for name, incorporation, and other integrated services together,
he can do so together by filling necessary information in Part A and Part B.
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3
Convert SPICe+ Form into PDF
The third step is to convert the SPICe+ form into a pdf form in order to affix the DSC.
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4
Upload the form on MCA
After affixing the DSC the form is required to
upload on the Ministry of Corporate Affairs in accordance with the existing process.
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5
Declare the company’s Subscribers & First Directors
Declaration of all Subscribers and first Directors of the company which is currently being filed in Form INC-9 will be
automatically generated in pdf format and shall be submitted only through Electronic form in all cases, except in case:
a) The no. of subscribers and/or directors is more than 20.
b) Any of the subscribers and/or directors do not have DIN and PAN
Recent Amendments and the Changes