Advantages

• Limited Liability Protection
• Better image & credibility
• Easy to raise funds and loans
• Listing on Stock Exchanges
• Preferred business structure for investors

Minimum Requirements

• Minimum three directors
• Minimum seven members
• No minimum capital required
• Maximum fifteen directors
• At least one director must be an Indian resident

Meaning of Public Limited Company

According to the Companies Act, 2013, a Public Limited Company is a company that can offer shares to the public and has defined liability.

A Public Limited Company can offer its shares to the public either via an Initial Public Offering (IPO) or through trading platforms like the stock market. Anyone is allowed to acquire the shares offered by a PLC.

A Public Limited Company strictly adheres to regulations and transparently discloses its financial status to its shareholders.

Suitability & Popularity

A Public Limited Company is suitable for medium and large-sized businesses that want to raise equity capital from the public. Due to its various advantages, it is one of the most popular legal entities among medium and large-size companies in India.

Characteristics of Public Limited Company

To better understand the concept of a PLC, let’s review its key characteristics:

• Directors: As per the Companies Act, 2013, a Public Limited Company must have at least three directors.
• Paid-up Capital: There is no minimum capital requirement to form a Public Limited Company.
• Prospectus: A Public Limited Company must issue a prospectus detailing its business affairs.
• Name: It is mandatory for all public companies to end their name with the word “Limited.”
• Limited Liability: Shareholder liability is limited to their shareholding, protecting personal assets.

Benefits of Public Limited Company Registration in Jaipur

• Additional Capital: Shares can be offered to the public, generating additional funds for the company.
• Increased Popularity: Listing on the stock market increases business visibility among investors and traders.
• Risk Distribution: Market risks are divided among multiple shareholders.
• Business Expansion: Increased capital, popularity, and risk distribution create growth opportunities.

Requirements for Incorporation of a Public Limited Company

As per the Companies Act, 2013, the following requirements must be met:

• Minimum Directors & Members: At least three directors and seven members are required.
• PAN Card: Self-attested PAN cards of members and directors.
• Identity Proof: Self-attested ID proof of members and directors (Passport/Voter ID/Aadhaar/Driving License).
• Address Proof: Self-attested address proof of members and directors (Bank Statement/Electricity Bill/Telephone Bill not older than two months).
• Photographs: Two passport-sized color photographs of each member and director.
• Business Address Proof: No Objection Certificate (NOC) from the property owner, property documents, or recent utility bill (not older than two months).

Information Required

• Authorized and paid-up share capital details.
• Place of birth and duration of residence of members and directors.
• Occupation details of members and directors.
• Proposed business objectives.
• Educational qualifications of members and directors.
• Email IDs and contact numbers of members and directors.

Process of Public Limited Company Registration in Jaipur

The Ministry of Corporate Affairs (MCA) amended the Companies (Incorporation) Rules, 2014, effective February 23, 2020, replacing the INC-32 (SPICe) form with the web service SPICe+.

Steps for Registration:

1. Application for Name Reservation

   • Apply for name reservation through the SPICe+ web service at www.mca.gov.in.
   • Ensure the name is available and not trademarked before applying.

2. Fill Part B of SPICe+

   • Complete Part B of SPICe+ for company registration.
   • The form allows modifications before final submission.

3. Convert SPICe+ Form into PDF

   • Convert the SPICe+ form into a PDF for Digital Signature Certificate (DSC) attachment.

4. Upload the Form on MCA Portal

   • After affixing the DSC, upload the form to the MCA portal.

5. Declaration of Company’s Directors and Subscribers

   • Form INC-9 for subscribers and first directors is auto-generated and submitted electronically, except in cases where:
     • The number of subscribers/directors exceeds 20.
     • A subscriber/director lacks a DIN or PAN.

Recent Amendments and Changes

• No need to mention SRN: SRN for names reserved in Part A of SPICe+ is now auto-filled in Part B.
• Mandatory ESIC & EPFO Registration: Effective February 23, 2020, all new companies must register for ESIC and EPFO.
• Professional Tax Registration in Maharashtra: Mandatory for companies in Maharashtra.
• Mandatory Bank Account Opening: Every newly incorporated company must apply for a bank account via the AGILE-PRO linked form.
• Mandatory use of e-MoA and e-AoA: Companies with up to seven subscribers must file e-MoA (INC-33) and e-AoA (INC-34), except in cases involving foreign nationals without valid business visas.
• Physical copies of MoA/AoA required in specific cases:
  • Foreign nationals without business visas must submit apostilled MoA and AoA.
  • Non-individual subscribers based outside India must attach apostilled MoA and AoA.

Mandatory Filing of Statutory Returns

Companies incorporated via SPICe+ must file statutory returns if they meet the prescribed threshold for EPFO/ESIC compliance.

A Public Limited Company enjoys all the benefits of a Private Limited Company while allowing an unlimited number of members and easy transfer of shares. Registration can be efficiently handled by Public Limited Company Registration Consultants.