PUBLIC  LIMITED  COMPANY  REGISTRATION

In India, a public limited company is most suitable & favourable for big scale business enterprises. According to the companies act 2013, sec.3(1)(a) A company may be formed for any lawful purpose by— (a) seven or more persons, where the company to be formed is to be a public company. A public limited company is a separate legal entity with limited liability. According to the companies act 2013, sec.4 (1)(a), the name of the company with the last word ―Limited in the case of a public limited company.

A public limited company has more stringent rules and regulations in comparison to a private limited company. A public limited is company is also allowed to list its shares on the stock exchange for general public. Here, funds raising can be done from individuals, financial institutions, equity share holding, preference shareholding and debentures.

A public limited company can be a :  i) Listed company & ii) Unlisted company.

Following are the characteristics of the Public Limited Company:

• Separate legal entity
• Limited liability
• Minimum no. of directors are 3 nos.
• Minimum no. of shareholder are 7 nos.
• Transferability of shares are more flexible and easier from individuals, institutions and companies.
• Funds raising can be done via multiple sources like: individuals, financial institutions, equity shares, preference shares and debentures.
• Better opportunities of growth due to broad capital base.
• Tax benefits & incentives offered by govt.
• Brand status in the business world
• Creditability & trust
• Issuance of prospectus is required
• Protection feasibility of intellectual property rights
• Compliance of laws & regulations
• No limit to number of shareholders
• Mandatory statutory meetings
• IPO offering

Points to remember for registering Public Limited Company:

1. Selection of company name
2. Registered address
3. Availability of at least three directors
4. Availability of minimum required directors
5. DSC (Digital Signature Certificate)
6. DIN (Digital Identification no.)
7. PAN (Permanent Account No. of Company)
8. TAN (Tax Deduction Account No. of Company)
9. MOA (Memorandum of Articles)
10. AOA (Articles of Association)
11. Minimum amount of share capital
12. COI (Certificate of Incorporation)
13.  Opening of Bank Account
14. Utility bills such as telephone bill, electricity bill, gas bill etc.
15. Sale deed or NOC from landlord
16. KYC of directors and shareholders (Aadhaar, PAN etc.)

Following are the major compliances of unlisted public limited company:

1. Director’s disclosure
2. CSR compliances
3. Appointment of CFO/CS/CEO
4. Board Meetings
5. Return of deposits
6. Appointment of cost auditor
7. Annual General Meeting
8. Annual Return

Following are the major compliances of listed public limited company:

1. Secretarial Audit Report
2. Annual Return
3. Annual General Meeting
4. Financial and Director’s Report
5. Financial Statement
6. Compliances laid by SEBI