Public Limited Company Services
Business Registration
Public Limited Company Registration Services by Deepak Prakash & Associates
At Deepak Prakash & Associates, we specialize in providing professional assistance for Public Limited Company Registration in Jaipur. A Public Limited Company is one of the most prestigious and widely used corporate structures for large businesses. This legal entity is distinct from other company types due to its ability to raise capital from the general public through the sale of shares, limited liability protection, and greater credibility in the market.
A Public Limited Company can have a large number of shareholders, and it is governed by the Companies Act, 2013. It offers numerous advantages to businesses that plan to scale and attract investors. If you are looking to establish a Public Limited Company, our team of experts is here to guide you through the entire registration process and ensure compliance with legal requirements.
What is a Public Limited Company?
A Public Limited Company (PLC) is a type of company where the shares are available to the public, and these shares can be traded on the stock exchange. It is a separate legal entity, meaning that it is distinct from its owners and has its own legal existence. A PLC is typically larger in scale and is designed to raise capital by selling shares to the public.
Key features of a Public Limited Company include the ability to offer shares to the public, limited liability for shareholders, a minimum of three directors, and the requirement to comply with more complex regulatory requirements compared to other types of companies.
Key Features of a Public Limited Company
Limited Liability: The major advantage of a public limited company is that the liability of shareholders is limited to the amount unpaid on the shares they own. This protects the personal assets of the shareholders in case the company faces financial losses.
Separate Legal Entity: A PLC is a separate legal entity, which means it can enter into contracts, own property, and incur debts in its own name, independent of its shareholders.
Raising Capital through Public Offerings: A public limited company has the ability to raise capital by issuing shares to the general public. This allows for significant fundraising opportunities, particularly through stock exchanges like the Bombay Stock Exchange (BSE) or National Stock Exchange (NSE).
Share Transferability: Shares in a public limited company can be freely transferred, subject to the rules and regulations of the stock exchange, which makes it easier for shareholders to buy and sell shares.
Corporate Governance and Accountability: A PLC is subject to strict corporate governance regulations. It must hold annual general meetings (AGMs), file detailed financial reports, and undergo audits, ensuring transparency and accountability to shareholders.
Minimum Share Capital: A public limited company must have a minimum paid-up capital, which is usually higher than that of a private limited company, ensuring that the company has a strong financial foundation.
Shareholders: A PLC can have a large number of shareholders, with the number of shareholders unlimited. The shareholders are the owners of the company but do not participate directly in the management unless they are also appointed as directors.
Regulatory Oversight: A PLC is heavily regulated by authorities such as the Ministry of Corporate Affairs (MCA) and the Securities and Exchange Board of India (SEBI). This ensures that it adheres to the highest standards of financial reporting and business operations.
Why Choose a Public Limited Company?
Here are some reasons why a Public Limited Company might be the ideal business structure for your venture:
Access to Capital: A PLC has the ability to raise large amounts of capital by issuing shares to the public. This is particularly beneficial for businesses that need substantial funds for expansion, research, and development, or large-scale projects.
Limited Liability: Shareholders in a PLC enjoy limited liability, meaning their personal assets are not at risk if the company faces financial difficulties. Their liability is limited to the amount unpaid on their shares.
Enhanced Credibility: Being a public limited company increases your business’s credibility, making it easier to gain the trust of investors, customers, and financial institutions. Public companies are often seen as more established and trustworthy.
Transferable Ownership: The shares of a PLC can be easily bought and sold, making it easier for shareholders to exit the business or for new investors to come on board. This liquidity is attractive to both current and prospective shareholders.
Perpetual Succession: A PLC has perpetual existence, which means that the company continues to exist even if there is a change in its shareholders or directors. This ensures the continuity of business operations.
Tax Benefits: A PLC can benefit from various tax exemptions and deductions available under the Income Tax Act, particularly in terms of capital gains and corporate tax rates.
Better Opportunities for Expansion: With a wider pool of capital and shareholders, a PLC is in a better position to expand its operations, launch new products, or enter new markets.
Who Can Register a Public Limited Company?
To register a Public Limited Company, you must meet the following eligibility criteria:
Minimum Shareholders: A public limited company must have a minimum of seven shareholders. There is no maximum limit on the number of shareholders.
Minimum Directors: A PLC must have at least three directors, of which at least one must be a resident of India.
Registered Office: A registered office address in India is mandatory for the company.
Capital Requirements: A public limited company must have a minimum paid-up capital, typically INR 5 Lakhs (though this amount may vary depending on the jurisdiction and other factors).
Advantages of Public Limited Company Registration
Access to a Larger Pool of Capital: The ability to raise funds through public offerings provides significant financial flexibility for growth and expansion.
Limited Liability Protection: Shareholders are protected from the company’s liabilities, reducing personal financial risk.
Easy Transferability of Shares: The transfer of shares is simple, enabling shareholders to buy and sell their stakes without impacting business operations.
Credibility and Prestige: A public limited company is often perceived as more credible and stable compared to smaller business structures. This can help attract investors, customers, and business partners.
Expansion and Diversification: With greater access to capital, a public limited company can diversify its business operations, expand into new markets, and fund large-scale projects.
Corporate Governance: Public companies are subject to strict corporate governance rules, which ensures transparency and accountability to the public and shareholders.
Public Limited Company Registration Process
The process of registering a Public Limited Company involves several key steps. Our experts at Deepak Prakash & Associates are here to guide you through each stage to ensure that your registration is completed smoothly and in compliance with all legal requirements:
Obtain Digital Signature Certificate (DSC): All directors of the company must have a Digital Signature Certificate (DSC) to sign electronic documents.
Director Identification Number (DIN): Obtain a Director Identification Number (DIN) for all the proposed directors. This is a mandatory requirement for all directors in a public company.
Name Approval: Choose a unique name for the company that complies with the guidelines set by the Ministry of Corporate Affairs (MCA). We assist in filing the name approval application with the MCA.
Memorandum and Articles of Association (MOA & AOA): Draft the Memorandum of Association (MOA) and Articles of Association (AOA), which lay the foundation of the company’s structure, objectives, and operations.
Filing with the Registrar of Companies (RoC): Submit the required documents, including the MOA, AOA, proof of office address, and details of the directors and shareholders, to the Registrar of Companies (RoC).
Certificate of Incorporation: After verifying the documents, the RoC will issue the Certificate of Incorporation, marking the company as legally established.
Apply for PAN and TAN: Apply for the Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for tax purposes.
Stock Exchange Listing: If you wish to list your shares on a stock exchange, we can assist with the process of stock exchange listing and ensuring compliance with Securities and Exchange Board of India (SEBI) regulations.
Post-Registration Compliance: We help you with ongoing compliance requirements, including the filing of annual returns, financial statements, and other mandatory filings with the MCA.
Why Choose Deepak Prakash & Associates for Public Limited Company Registration?
- Expert Advice: Our experienced professionals will guide you through the entire process, ensuring your registration is efficient and legally compliant.
- End-to-End Service: From initial consultation to post-registration compliance, we provide complete support at every step.
- Affordable Fees: Our services are competitively priced with transparent billing, ensuring that you receive high-quality service at an affordable cost.
- Reliability: With years of experience, we have built a reputation for providing reliable and trustworthy company registration services.
