Public Limited Company Registration
Meaning of Public Limited Company
According to the Company Act 2013, a Public Limited Company refers to the company which can offer shares to the public and has defined liability.
A public limited company can offer its shares to the public either via (IPO) initial public offering or trading platform like the stock market. Everyone is allowed to acquire the shares offered by PLC.
A Public Limited Company rigidly adheres to the regulations and reveals its accurate financial status to its shareholders.
Suitability & Popularity
A public company is suitable for medium and large-sized businesses that want to raise equity capital from the public. Due to its various advantages, the public limited company is one of the most popular legal entities among medium and large-size companies in India.
Characteristics of Public Limited Company
To understand the concept of PLC better, let us check its characteristics which are as follows: Let us have a look at the benefits of establishing a public limited company.
- Directors: Under Companies Act, 2013 provisions, a public limited company must have at least 3 directors.
- Paid-up capital: no minimum capital is required to form a Public Limited Company
- Prospectus Under the Companies Act, 2013, a public limited company must issue a prospectus that showcases the company’s business affairs, to the public.
- Name As per Companies Act, 2013, it is mandatory for all the public companies to end their name with the word “Limited”.
- Limited Liability Public Limited Company limits the liability of each shareholder by making the owners jointly & severally liable for the business’s debts.
Benefits of Public Limited Company Registration in Jaipur
- Additional Capital Shares offered to the common public in large, allowing everyone to invest in the company, bring additional capital for the company.
- Increased Popularity Listing on a stock market platform increases the popularity of the PLC’s business among the traders dealing in mutual funds, hedge funds, etc which further opens up avenues for business opportunities for the Company.
- Divided Risk The risk of the market gets divided with the allotment of shares among the general public in large.
- Success and Business Expansion Divided risk, increased publicity and additional capital together lead to the opportunities for business expansion & success and investment in new profitable projects.
Requirements for the Incorporation Public Limited Company
Companies Act, 2013 has listed the following requirements for the incorporation of a Public Limited company
- Minimum 3 Director and 7 Members: Minimum 3 Directors and 7 Members are required to incorporate Public Limited Company.
- PAN Card: Self-attested PAN Card of Members and Directors.
- Identity Proof of Directors: Self-attested ID proof of Members and Directors- (Anyone out of the following -Valid Passport/Voter ID/Aadhar Card/Valid Driving License)
- Address Proof: Self attested Address proof of the Members and Directors (Any one out of the following – Bank Statement/ Electricity Bill/ Telephone Bill/ Mobile Bill which and it should be not older than 2 months
- Passport Size Photo 2-2 Passport Size Colored Photos of Members and Directors.
- Business Address Proof (Owned/Rent/Leased): NOC from the Owner of Property/Property Papers (Title Deed)/Utility Bill (Either Electricity Bill or Mobile Bill or Telephone Bill) (Should Not be Older than 2 Months)
Information Required
- Authorized and Paid-up Share Capital of the Proposed Company and Number of Shares Subscribed by Members
- Place of Birth and Duration of Stay of Members and Directors at Present Residential Address.
- Occupation of Members and Directors.
- Proposed Object/Business of the Proposed Company.
- Educational Qualification of Members and Directors.
- Email IDs and Contact Number of Members and Directors.
Process of Public Limited Company Registration in Jaipur
The Ministry of Corporate Affairs vide its notification dated 18th February 2020 effective from 23rd February 2020 has further amended the Companies (Incorporation) Rules, 2014 thereby substituting the old Form INC-32 (SPICe) with web service SPICe+ along with certain other amendments.
The first step is to make an application for reservation of name which shall be reserved by using the web services (SPICe+) available at www.mca.gov.in along with the specified fees. Before Applying for the name, kindly check that the name is available on MCA as well as no trademark. Is there no such name under the Class of work you are going to apply.
The same can be checked by clicking on the link below: Trademark Registration
The new integrated form consists of two parts i.e. PART A and Part B. The Name(s) of a company can be reserved in Part A of SPICe+. In case the applicant wants to apply for name, incorporation, and other integrated services together, he can do so together by filling necessary information in Part A and Part B.
The second step is to fill the Part B of SPICe+ for registering the Company. The said form contains various sections that allow you to save and modify information if required.
The third step is to convert the SPICe+ form into a pdf format to affix the DSC.
After affixing the DSC the form is required to upload on the Ministry of Corporate Affairs following the existing process.
Declaration of all Subscribers and first Directors of the company which is currently being filed in Form INC-9 will be automatically generated in pdf format and shall be submitted only through Electronic form in all cases, except in case:
• The no. of subscribers and/or directors is more than 20.
• Any of the subscribers and/or directors do not have DIN and PAN
Recent Amendments and the Changes
- No need to mention SRN There is no need to mention SRN for names reserved in Part A of SPICE+ as the same will be automatically displayed while filing Part B after filing of Part A.
- Mandatory Registration for ESIC and EPFO Registration for ESIC and EPFO has been made mandatory for all new companies that are incorporated w.e.f 23rd February 2020.
- Professional Registration for Maharashtra Professional registration is mandatory for all new companies established in the State of Maharashtra, w.e.f. February 23, 2020.
- Mandatory Application for opening a bank account Application for opening of a bank account has become mandatory for all new companies incorporated w.e.f 23rd February 2020 the same application shall be filed through the AGILE-PRO linked web form.
- Declaration of Company’s Subscribers and First Directors in PDF form & e-submission Declaration of all Subscribers and First Directors of the Company which is currently being filed in Form INC-9 will be automatically generated in pdf format and shall be submitted only through Electronic form in all cases, except in case:
- The no. of subscribers and/or directors is more than 20.
- Any of the subscribers and/or directors don’t have DIN and PAN.
- Mandatory use of e-MoA (INC-33) and e-AoA (INC-34) (in some cases)It is mandatory to use e-MoA (INC-33) and e-AoA (INC-34) in case the number of subscribers is up to 7 and in the following scenarios:
- Individual subscribers are Indian nationals
- Individual subscribers who are foreign nationals in case they valid DIN and DSC and also submit proof of a valid business visa
- Non-individual subscribers based in India.
- Signed Physical Copies of the MoA / AoA (in some cases)Physical copies of the MoA / AoA must be signed and attached if the individuals’ first subscribers are located outside India or if the individual outsourcers do not have a valid business practice or any of the following scenarios: –
S. No. Cases Forms to be filed 1. Non-Individual first subscriber based outside India SPICe+ (INC-32) with apostille MOA and AOA as attachments 2. Non-Individual first subscriber based in India SPICe+ (INC-32) with linked filing of e-MOA (INC-33) and e-AOA (INC-34) 3. Indian National being Subscriber other than Director SPICe+ (INC-32) with linked filing of e-MOA (INC-33) and e-AOA (INC-34) 4. Indian National being Subscriber-cum-Director SPICe+ (INC-32) with linked filing of e-MOA (INC-33) and e-AOA (INC-34) 5. Foreign National being Subscriber other than director having valid DIN SPICe+ (INC-32) with linked filing of e-MOA (INC-33) and e-AOA (INC-34) along with Valid Business Visa to be submitted. In case Business Visa is not available, apostille MOA and AOA shall be attached and in such cases, e-MOA (INC33) and eAOA (INC-34) are NOT acceptable. 6. Foreign National being Subscriber-cum-Director having valid DIN SPICe+ (INC-32) with linked filing of e-MOA (INC-33) and e-AOA (INC-34) along with valid Business Visa to be submitted. In case Business Visa is not available, apostille MOA and AOA shall be attached and in such cases, e-MOA (INC33) and e-AOA (INC-34) are NOT acceptable. 7. Foreign National being Subscriber-cum-Director not having valid DIN SPICe+ (INC-32) with apostille MOA and apostille AOA as attachments. Note: In all the above-mentioned cases, the maximum number of subscribers allowed shall be 7 for filing of SPICe+ form. Wherever the number of subscribers exceeds 7, SPICe+ form shall be filed with MoA and AoA as attachments.
- Mandatory Filing of Statutory Return: Companies newly incorporated through SPICE+ and who have obtained EPFO/ESI number will have to file Statutory Return only if the prescribed threshold limit has been exceeded.
A Public limited company gets all the benefits that a Private Limited Company enjoys. Besides, a PLC can have an unrestricted number of members and it can easily transfer the shareholding. Public Limited Registration can be easily and legally accomplished by Public Limited Company Registration Consultants.