Startup

Overview

A Public Limited Company (PLC) is a corporate structure suitable for businesses aiming to raise capital from the public through shares. Governed by the Companies Act, 2013, a PLC enjoys a separate legal identity, limited liability, and enhanced credibility. It is ideal for large-scale businesses seeking growth, public investment, and listing on stock exchanges.

Advantages

• Access to Capital: Ability to raise funds by issuing shares to the public.
• Limited Liability: Shareholders’ liability is restricted to their shareholding.
• Separate Legal Entity: Distinct from its shareholders and directors.
• Transferable Shares: Easy transferability of shares enhances liquidity.
• Global Credibility: Enhanced reputation and acceptance in global markets.

How Fibils Helps

• Seamless Registration: Assistance with the incorporation of your Public Limited Company.
• Documentation Support: Help with drafting the Memorandum of Association (MOA) and Articles of Association (AOA).
• Compliance Services: Guidance with obtaining PAN, TAN, GST, and SEBI approvals if needed.
• Capital Market Support: Help with the listing process and IPO preparation.

Eligibility Criteria

• Minimum seven shareholders.
• Minimum three directors (at least one must be a resident of India).
• No maximum limit on shareholders.
• Minimum paid-up capital as specified under the Companies Act.

Documents Required

• PAN and Aadhaar cards of all directors and shareholders.
• Address proof of directors (utility bill, voter ID, etc.).
• Business address proof (utility bill, rent agreement, or property papers).
• Digital Signature Certificates (DSC) for all directors.
• Passport-sized photographs of directors.

Process

• Reserve a unique company name through the Ministry of Corporate Affairs (MCA) portal.
• Draft MOA and AOA with assistance from Fibils.
• File incorporation forms with the Registrar of Companies (ROC).
• Obtain Certificate of Incorporation.
• Apply for PAN, TAN, GST, and other registrations.
• Raise capital through IPO or private placement (optional).

Features

• Ownership divided into shares, publicly traded or privately held.
• Mandatory compliance with SEBI regulations for listed companies.
• Transparent operations with mandatory public disclosures.
• Perpetual succession and separate legal entity status.

Types

• Listed Public Limited Company: Shares are traded on stock exchanges.
• Unlisted Public Limited Company: Shares are not listed but can be privately held.
• Subsidiary Public Limited Company: Owned by another entity but operates as a public company.

FAQs
Q1: Can a Public Limited Company issue shares to foreign investors?
A: Yes, PLCs can issue shares to foreign investors under FEMA and SEBI guidelines.

Q2: Is it mandatory to list a Public Limited Company on a stock exchange?
A: No, a Public Limited Company can remain unlisted and still operate.

Q3: Are audits mandatory for Public Limited Companies?
A: Yes, all PLCs must undergo statutory audits and comply with SEBI regulations (if listed).

Q4: What is the minimum paid-up capital for a Public Limited Company?
A: The minimum paid-up capital requirement is prescribed under the Companies Act and varies based on current regulations.

Expand your business with a Public Limited Company! Partner with Fibils for expert guidance and hassle-free registration.