In India there are various types of entities which have been given under the Companies Act of 2013. One such entity is Public Limited Company. This is the highest corporate entity in India which can be registered through the Ministry of Corporate Affairs website. This type of company is suitable for those businesses which need very high investment as they are very big ventures. They are most trusted among the customers and investors in the market. People prefer to invest in such entities, hence if you are thinking about starting a big venture you must opt for registration of a Public Limited Company. In order to know about registration of a Public Limited Company more must read the present write-up till the end line. After this you will have a thorough idea about most of the things regarding Public Limited Company.
What is a Public Limited Company?
A corporate body which has been registered under the Companies Act of 2013 with minimum seven directors is called a Public Limited Company. Registration of a Public Limited Company is beneficial for those who want high investment for their businesses. It has been said that these companies offer their shares to the general public. This is how these companies raise capital. Also it is convenient to invest because a shareholder is just liable to the extent he or she has invested in the company. Shareholders are the actual owners of such companies.
Important Things Regarding Public Limited Company
Some of the key things regarding registration of a Public Limited Company regarding which one must be aware about are mentioned below:
- It is the highest corporate structure under the company law
- It is a great structure for the long run of the company
- It is having stringent compliance with the law that cannot be ignored
- It can have any number of members. There is no such limitation on the number of members
- Have more transparency in comparison to any other entity
- Its shareholding can be transferred very easily
- Initial Public Offering is possible in this type of entity
- Shareholders can claim their part in the assets and profit of the company
Process of Registration of a Public Limited Company
As it is the highest entity , its registration process requires more consciousness because the examination of the application is done more consciously by the registrar of the companies. It’s not easy to register a Public Limited Company. Given below is the procedure for the registration of a Public Limited Company. If you want to register the same follow the step given below:
Pre-incorporation Formalities
- Begin by forming a clear idea of your business and its objectives.
- Choose a suitable name for your company.
- Ensure that the name complies with the naming regulations and is not already in use.
- Prepare the Memorandum of Association as well as the Articles of Association. These two are the company’s constitution documents.
- Appoint at least seven directors
- Obtain the consent of the directors to become the director of the company
- Establish a registered office address for the company.
- Determine the share capital of the company and the number of shares to be issued.
- Invite individuals or entities to subscribe to the shares by signing a subscription agreement.
- Each director must sign a statutory declaration of compliance with the requirements for incorporation.
Process of Incorporation
- Visit the official website of the MCA that is Ministry of Corporate Affairs website
- Apply for the name approval through the same website mentioned in the above point
- Prepare the necessary incorporation documents till the name will be approved
- After the name of the company is approved fill in the application for registration
- Upload all the documents with the application for the registration
- After completing the application check it once before submitting it before the registrar of the companies
- After checking the same, submit it before the registrar of the companies and pay the prescribed filing fee.
- Registrar of Company will examine the application which has been filed before the registrar of companies
- After successful examination if everything finds correct as per the law certificate of incorporation will be issued
Post-incorporation Formalities
- Once you have the Certificate of Incorporation, you need to commence your business activities.
- Ensure ongoing compliance with statutory requirements
- Hold annual general meetings and keep accurate records.
- If you intend to list your company on a stock exchange, you will need to follow additional regulations and requirements
- Follow corporate governance standards and reporting requirements specific to registration of a public limited company
- Obtain the legal registrations and licenses applicable on the registration of a Public Limited Company
Documents Required for Registration of a Public Limited Company
Documents required in order to register a Public Limited Company are given below:
- Personal details like id and address proof of all the directors with one passport size photo
- Business address proof related document is must it can be either a rent agreement or a utility bill
- Memorandum of Association
- Articles of Association
- Form INC-22 with respect to the notice of the situation of the registered office.
- Form DIR-12 is needed in order to give the information of the particulars with respect to the appointment of directors of the company and key managerial personnel of the company.
- Declaration of compliance is also required
- Consent given by individuals agreeing to become directors of the company.
- Consent given by the appointed Company Secretary.
- A list of the initial directors and subscribers (shareholders) of the company.
- Certificates issued to shareholders as evidence of their ownership of shares in the company.
- A seal used to authorize company documents.
Benefits of Registering a Public Limited Company
Some of the key benefits of registration of a Public Limited Company are :
- Shareholders of the company have limited liability which secures them against the personal debts of the company
- These companies can raise capital by selling the shares of the company
- Its existence is perpetual
- Its credibility and reliability is very high
- Trustworthiness is not beatable
- Limits liabilities of the directors
- Unlimited financial support by the public through shares and debentures
- Brand image of such entities is very high
- It’s easy for such companies to get funds
- They have common seal
- They are juristic or artificial person
Conclusion
A Public Limited Company, as per the Companies Act of 2013 in India, is a corporate entity. It forms with at least seven directors. Registration of a Public Limited Company is always suggested to those who want to establish big ventures. This is because this business structure is highly trusted by investors and customers, making it an ideal choice for large ventures. It provides numerous advantages, including the ability to easily transfer shares, conduct Initial Public Offerings, and limit shareholders’ liability to their investment.
The registration process of PLCs involves pre-incorporation formalities, applying for name approval, submitting incorporation documents, and post-incorporation compliance. Registering a Public Limited Company offers benefits like limited liability for shareholders, perpetual existence, high credibility, and the ability to secure substantial financial support from the public through shares and debentures, enhancing the company’s brand image and facilitating fundraising.
