A Public Limited Company or PLC is a legal business entity that is authorized to offer or sell its shares to the public for trading purposes. The offered shares by a PLC can be acquired by anyone via Initial Public Offering (IPO) or by stock market trading. PLC has to declare their financials and company status to the general public as per the law.
Eligibility Criteria to form Public Limited Company
- PLC should have 3 directors and 7 shareholders (No limit to maximum number of directors)
- Director Identification Number (DIN) should be with every director
- Minimum share capital of Rs. 5 lakh is required for its formation
- No minimum capital required to form a PLC
- Different or unique name should be chosen for trademark registration
Steps to register as Public Limited Company
Follow the below steps to register your business as a Public Limited Company:
Step 1: Download and Filling up of Application Form
Applicants need to procure a form that is to be filled and submitted to register a business enterprise as a public limited company. The form is available online that can be filled and submitted online
Step 2: Digital Signature Certificate (DSC) & Director Identification Number (DIN)
After downloading and filling the form online, applicants need to present a Digital Signature Certificate (DSC) and Director Identification Number (DIN) of all directors to proceed further towards registering a public limited company.
Step 3: Form Submission with the Registrar of Company (ROC)
Further applicant needs to submit all the required documents (self-attested) to the Registrar of Company (ROC) along with the payment of prescribed registration fees
Step 4: Certificate of Incorporation of a PLC
After the approval of business enterprise as a public limited company and confirmation of its unique name, company will be officially incorporated as a Public Limited Company
Docs Required for Public Limited Company Registration
- Duly filled application form with passport-sized photographs
- Identity Proof of Directors & Shareholders: Voter’s ID card, Passport, Driving License
- PAN card for Indian citizens
- Passport for Foreign Nationals
- All the Directors’ Identification Number (DINs) & Digital Signature Certificates (DSCs)
- Address Proof for all the directors and shareholders: Utility Bills, Bank statement
- Proof of registered office
- Memorandum of Association (MoA) and Articles of Association (AoA)
- Any other document required by the respective authority
Features and Benefits
- The most obvious benefit of a public limited company is that it offers limited liability to all shareholders of the company
- Since the shares of a public limited company are offered to the general public, the company has access to more capital
- A public limited company enables the risk to be spread and distributed
- A public limited company enables quicker transfer of shares
- All the shares of a public limited company are listed in stock exchanges
Difference between Public Ltd. Company & Pvt. Ltd. Company
|Category||Public Limited Company||Private Limited Company|
|Listing||Listed on stock exchange||Not listed on stock exchanges|
|Trading||Stocks are traded publicly||No stocks to be used for trading|
|Members required||Minimum 7 members||Minimum 2 members|
|Paid up capital||Min. Rs. 5 lakh||Min. Rs. 1 lakh|
|Transferring of shares||Not restricted||Restricted|
|Public Involvement||Yes, for share trading||No invitation for public|
|Issue of Prospectus||Yes||No|
|Certificate of Commencement of business||Yes||No|
Frequently Asked Questions (FAQs)
Q. Who can be a director?
Ans. Anybody above the age of 18 years can become a director of a public limited company.
Q. How many directors and shareholders are required to form a public limited company?
Ans. At least 3 directors and 7 shareholders are required to start a public limited company.
Q. What is the minimum share capital required to register as a public limited company?
Ans. Minimum share capital of Rs. 5 lakh is required to register as a public limited company.
Q. Are shareholders responsible for any loss to the company?
Ans. Shareholders are held responsible only for the amount invested by them.
Q. Can an NRI or foreign national become a director in a public limited company in India?
Ans. Yes. An NRI or foreign national can become a director of a public limited company in India after obtaining a Director Identification Number (DIN).