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Public Limited Company - An Overview

PUBLIC LIMITED COMPANY is a publicly traded corporation with limited liability whose securities can be traded in stock exchange to raise a capital from the general public. Public company is primarily if the shareholders/investors are large in number. The shares of a public limited company can be transferred with ease and suitable for raising a 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 given with complete compliances in 10 days.

Note: - A Subsidiary company shall be deemed as a public company if it is not a subsidiary to a private company, even if it is a private company as per its articles.

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Table of Contents

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

Public Limited Company - An Overview

PUBLIC LIMITED COMPANY is a publicly traded corporation with limited liability whose securities can be traded in stock exchange to raise a capital from the general public. Public company is primarily if the shareholders/investors are large in number. The shares of a public limited company can be transferred with ease and suitable for raising a 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 given with complete compliances in 10 days.

Note: - A Subsidiary company shall be deemed as a public company if it is not a subsidiary to a private company, even if it is a private company as per its articles.

Why to choose Public Limited Company?

•Option of share listing in stock exchange
•Preference in loan Sanctioning
•More liquidity as transferability of shares is easy
•Limits liability of its partner
•Spread of risk amongst the large number of shareholders
•Prestigious profile and creditability
•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 on rent, then rent agreement with NOC from landlord
•MOA & AOA

Mandatory Requirements

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

Registration Process

Step 1

Reserve a unique name

Name should be valid as per Company Act, 2013. 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

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

Step 5

Apply for PAN & TAN of the company

Step 6

ROC will issue COI if the Forms are in order

Step 7

Open a current bank account on the company name

Annual Compliances

PLC is required to maintain stringent compliances post registration; these compliances differ for listed PLC’s and unlisted PLC’s.

Compliances for an Unlisted PLC

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

Compliances for a Listed PLC

•Annual general meeting must be done in compliance with section 121 of Companies Act
•Filing of financial statement in compliance with section 137 of Companies Act 2013
•Filing of Annual return in compliance with Section 92 of Companies Act 2013
•Financial and directors report must be adopted as per section 173 of Companies Act 2013
•Filing of ITR 6 on or before 30th September of the financial year
•Filing of Secretarial audit report in compliance with Section 204 of the Companies Act 2013. Secretarial Report must be submitted only when the company’s total Paid-up capital is equal to or crosses INR 50 crores or equal to or exceeds INR 250 crores
•Listed companies must comply with the rules and regulations laid by SEBI

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