Public Limited Company (PLC)

A Public Limited Company stands as the preferred choice for medium to large-scale businesses in India looking to raise funds from the public. Its primary advantage lies in its ability to raise capital by issuing shares through an IPO (Initial Public Offering), providing a higher level of transparency in business operations compared to other entities. However, setting up a Public LTD. Co. entails stricter requirements than a Private Limited Company.

A Public LTD. Co. must have a minimum of 7 members, with no upper limit on membership. It distinguishes its operations from ownership significantly and holds the exclusive ability to list its shares on major Indian stock exchanges like NSE (National Stock Exchange) and BSE (Bombay Stock Exchange).

ETaxwala serves as an optimal online platform for various company registration services, including Public LTD. Co. registration, offering specialized and tailored services for each client.

Advantages of a Public Limited Company:

• Separate Legal Entity: Enjoying distinct identity, a PLC can operate independently, hold bank accounts, obtain licenses, hire employees, and enter contracts under its name.
• Perpetual Existence: The company continues to exist until legally dissolved, unaffected by changes in directorship or ownership.
• Share Transfer and Ownership: Shares can be easily transferred, simplifying ownership changes with the approval of shareholders.
• Property Ownership: A PLC, as a separate entity, can own and sell property under its name, securing it from claims by individual directors.
• Borrowing Capacity: Financial institutions prefer lending to a PLC over other entities, providing various fundraising options like public deposits, debentures, and equity shares.

Minimum Requirements:

• 3 directors
• 7 shareholders
• At least 1 director must be an Indian resident
• Director and shareholder can be the same person
• DSC for 2 directors
• DIN for all directors

Documents Required for Registration:

• PAN card for Indian Nationals; Passport for Foreign Nationals
• Identity Proof: Passport, Aadhar card, Voter ID, or Driving License
• Passport-sized photographs
• Address Proof: Utility bills or Bank Statements
• Company Address Proof: Utility bills, Rent Agreement with NOC, or property documents
• Declarations, resolutions, MOA, and AOA of the Company

Registration Process:

ETaxwala simplifies registration procedures for businesses in India:

• 1. Obtain DSC & DIN: Application for Digital Signature and Director Identification Number.
• 2. Name Approval: Applying for company name approval.
• 3. MoA and AoA Submission: Preparation and submission of MoA and AoA.
• 4. Certificate of Incorporation, PAN, TAN, Bank Account: Filing for CoI, PAN, TAN, and Bank Account.
• 5. Congratulations! Access and download your Incorporation Certificate and kit from your dashboard.

FAQs:

1. How many directors can a Public LTD Co have?


Ans: A Public LTD. Co. can have a minimum of 3 directors and a maximum of 15 directors.

2. Are there limits on the number of shareholders in a Public LTD Co?


Ans: A Public LTD. Co. must have a minimum of 7 shareholders, but there is no restriction on the upper limit.

3. Is yearly renewal mandatory for a Public LTD Co?


Ans: No, a Public LTD. Co. remains active until it fulfills its annual compliances. Failure to meet these compliances may result in its status changing to a dormant company.

4. Can NRIs/Foreign nationals hold shares in a Public LTD Co?


Ans: Yes, subject to compliance with FDI guidelines issued by the government.

5. Can a Public LTD Co issue or trade shares publicly?


Ans: Absolutely, a Public LTD. Co. can offer shares to the public through an IPO (Initial Public Offer) and trade these shares on registered stock exchanges.

6. What qualifications are required for a director in a Public LTD Co?


Ans: There are no mandatory qualifications; any natural person above 18 years old can become a director.

7. What is a DIN?


Ans: A Director Identification Number (DIN) is a unique identifier for company directors, required to be mentioned in relevant documentation upon a person's appointment as a director.

8. What is a DSC?


Ans: A Digital Signature Certificate (DSC) is an encrypted electronic signature used for signing e-forms during company registration document filings.