Startup
Public Limited Company
Public Limited Company Registration - An Overview
A Public Limited Company or a PLC is the best business structure for those entrepreneurs who are planning big like opening an IT infrastructure, setting up of a manufacturing plant, etc. Nowadays, people mostly choose the option of a Private Limited Company over a Public Limited Company. However, it shall be pertinent to take into consideration that if in case an individual is seriously planning something big and wants to raise capital from the public by issuing them shares in return. Then, in that case, he or she must go for the option of incorporating a Public Limited Company.
A Public Limited Company enjoys all the rights and privileges of a corporate entity together with the feature of Limited Liability. Further, some of the prominent and renowned examples of a Public Limited Company are the TATA Steel Limited, Reliance Communications Limited, etc.
What is a Public Limited Company?
A Public Limited Company is registered as per provisions prescribed under the Companies Act, 2013. The member of a Public Limited Company enjoys the feature of Limited Liability. Moreover, this business structure is allowed to raise capital from the Public by issuing shares in return.
Further, a minimum of three directors and seven members are required for the public limited company registration. The definition of a PLC is also provided under section 2(71) of the Companies Act, 2013.
According to Companies (Amendment) Act, 2015, no minimum amount is required for the registration of a Public Limited Company.
Further, the rules and regulations of a Public Limited company are more rigid and strict in comparison to Private Limited Company. Still, it is considered as a better form of doing business than a Private Company. The reason for the same is that this business structure not only provides the benefits of a Private Company but also has features like easy transferability of shares and ownership, etc.
A subsidiary company for the purpose of a Public Limited Company Registration shall also be deemed to be a public company, even if the subsidiary company remains listed as a private company in its Articles.
Procedure for Public Limited Company Registration
Step 1: Digital Signature Certificate (DSC)
- Obtain DSC and DIN: The first and foremost step is to obtain DSC (Digital Signature Certificate) for at least one director. The same is required for signing a document digitally and electronically. It is a mandatory document and is issued by the certifying authority. Further, all the directors of the proposed company are mandatorily required to obtain DIN (Director Identification Number). However, the process of obtaining DIN has now been simplified by the MCA as directors can now apply DIN by just filing the SPICe form.
- Apply for Company’s Name: In the second step, the members of the company are required to check name availability by visiting the MCA (Ministry of Corporate Affairs) official website. After visiting the MCA portal, the next step is to select the MCA services and then check for the name availability. However, it shall be taken into consideration that the name proposed must not be the name already taken or registered.
- Filing Form SPICe+: Once the name proposed has been approved, the applicant is now eligible to file the SPICe+ form for availing the Certificate of Incorporation. Further, along with the form, the applicant is required to file all the documents needed, such as MOA and AOA. Furthermore, these two documents contain all the details regarding the mission, vision, objectives, aims, business activities, and the roles and duties of directors and shareholders together with the definition of a proposed company.