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Public Limited Company - An Overview

A PUBLIC LIMITED COMPANY is a publicly traded corporation with limited liability whose securities can be traded on a stock exchange to raise capital from the general public. A public company is primarily suitable if the shareholders/investors are large in number. The shares of a public limited company can be transferred with ease, making it suitable for raising capital. There is much to gain by being a public limited company; however, it comes with stringent compliances. At firststartup, we provide a quick registration that can be completed with full compliance in 10 days.

Note: A subsidiary company shall be deemed a public company if it is a subsidiary of a public company, even if it is a private company as per its articles.

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Table of Contents

Public Limited Company - An OverviewWhy choose a Public Limited Company?Papers and Forms RequiredMandatory RequirementsRegistration ProcessAnnual CompliancesCompliances for an Unlisted PLCCompliances for a Listed PLC

Public Limited Company - An Overview

A PUBLIC LIMITED COMPANY is a publicly traded corporation with limited liability whose securities can be traded on a stock exchange to raise capital from the general public. A public company is primarily suitable if the shareholders/investors are large in number. The shares of a public limited company can be transferred with ease, making it suitable for raising capital. There is much to gain by being a public limited company; however, it comes with stringent compliances. At firststartup, we provide a quick registration that can be completed with full compliance in 10 days.

Note: A subsidiary company shall be deemed a public company if it is a subsidiary of a public company, even if it is a private company as per its articles.

Why choose a Public Limited Company?

•Option of share listing on a stock exchange
•Preference in loan sanctioning
•More liquidity as transferability of shares is easy
•Limits the liability of its partners
•Spreads risk amongst a large number of shareholders
•Prestigious profile and credibility
•Greater transparency because of heavy compliances

Papers and Forms Required

•Identity Proof of Directors & Shareholders
•Address Proof of Directors & Shareholders
•Proof of Nationality for Foreign Nationals
•Latest electricity bill, telephone bill & bank statement of directors
•Photo of directors and shareholders
•If property is on rent, then a rent agreement with NOC from the landlord
•MOA & AOA

Mandatory Requirements

•Minimum of 3 Directors holding a valid DIN (Director Identification Number)
•Minimum of 7 shareholders
•One Director must be an Indian Citizen and Indian Resident
•Unique Company Name
•Minimum authorized capital of INR 5 Lakhs
•DSC for every director

Registration Process

Step 1

Reserve a unique name

The name should be valid as per the Companies Act, 2013. The approved name is valid for 20 days from the date of approval for a new company registration.

Step 2

Apply for the DSC

Step 3

Filing of SPICe form

Step 4

Submit papers & forms to the ROC along with MOA & AOA. Mandatory requirements should also be complied with before submission.

Step 5

Apply for the PAN & TAN of the company

Step 6

The ROC will issue a COI if the forms are in order.

Step 7

Open a current bank account in the company's name.

Annual Compliances

A PLC is required to maintain stringent compliances post-registration; these compliances differ for listed and unlisted PLCs.

Compliances for an Unlisted PLC

•Required to hold 4 board meetings as per Section 173 of the Companies Act, 2013.
•Appointment of a cost auditor as per Section 148 of the Companies Act.
•An auditor should be appointed within 30 days of a board meeting or 180 days of the financial year, whichever is earlier.
•Appointment of CEO/CFO/CS within 30 days of the AGM or within 6 months in case of a casual vacancy.
•The AGM must be conducted in compliance with Section 96 of the Companies Act, 2013.
•The CSR committee must hold 4 meetings with a gap of not less than 120 days between two meetings for the approval of CSR activities in compliance with Section 135.
•Disclosure of financial interest in line with Section 184 of the Companies Act, 2013.

Compliances for a Listed PLC

•The annual general meeting must be conducted in compliance with Section 121 of the Companies Act.
•Filing of the financial statement in compliance with Section 137 of the Companies Act, 2013.
•Filing of the Annual Return in compliance with Section 92 of the Companies Act, 2013.
•Financial and directors' reports must be adopted as per Section 173 of the Companies Act, 2013.
•Filing of ITR-6 on or before the 30th of September of the financial year.
•Filing of the Secretarial Audit Report in compliance with Section 204 of the Companies Act, 2013. The Secretarial Report must be submitted only when the company’s total paid-up capital is equal to or exceeds INR 50 crores or the turnover is equal to or exceeds INR 250 crores.
•Listed companies must comply with the rules and regulations laid down by SEBI.

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