Introduction of Public Limited Company
A Public Limited Company (PLC) is a type of company that has the ability to sell shares to the general public through an initial public offering (IPO) on stock exchanges. This structure allows companies to raise capital by attracting a wide range of investors, which can significantly enhance their growth potential. PLCs are governed by strict regulatory requirements, ensuring transparency and accountability to their shareholders. In recent years, the PLC model has gained considerable popularity, as many businesses seek to leverage the benefits of being publicly traded. This trend reflects a growing confidence among companies in accessing public funds to fuel expansion, innovate, and compete in increasingly dynamic markets.
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Public Limited Company Benefits
- Additional Capital: Shares are made widely available to the public, enabling anyone to invest in the business and provide further funding.
- Greater Popularity: The PLC’s business becomes more well-known among traders who deal in mutual funds, hedge funds, etc., after it is listed on a stock market platform. This opens more doors for the company.
- Divided Risk: When shares are distributed among the general public, the market's risk is divided.
- Business Expansion: Opportunities for business expansion and success, as well as investment in new profitable projects, are brought about by shared risk, greater publicity, and additional capital.
Details Needed
- Share Capital: The authorized and paid-up share capital, as well as the number of shares subscribed by members in the proposed company.
- Personal Information: The members’ and directors’ birthplace and length of residence at their current residential address.
- Occupations: The occupations of members and directors.
- Purpose: The intended company's purpose or line of business.
- Educational Backgrounds: The educational backgrounds of directors and members.
- Contact Information: The email addresses and phone numbers of the directors and members.
Public Limited Company Registration Process
- Name Reservation Application: Applying for a name reservation is the first step, which must be completed with the appropriate fees and web services (SPICe+) accessible at www.mca.gov.in. Please make sure the name is available on MCA and is not already registered as a trademark before submitting an application. By clicking the following link, Trademark Registration, you can verify the same.
- Two Components: The new integrated form is divided into Parts A and B. A company may reserve its name(s) in SPICe+ Part A. If the applicant would like to apply jointly for a name incorporation and other integrated services, he may do so by completing Parts A and B with the required information.
- Complete SPICe+ Part B: Filling out Part B of SPICe+ is the third step in registering the company. You can save and edit information in different sections of the aforementioned form as needed.
- Create a PDF from the SPICe+ Form: The fourth step is to convert the SPICe+ form to a PDF format.
- Use MCA to Upload the Form: The form must be uploaded to the Ministry of Corporate Affairs using the current procedure after the DSC has been attached.
- Declaration of Directors and Subscribers: A declaration of all Subscribers and first Directors of the company, 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 when: There are more than 20 subscribers and/or directors. Not a single director or subscriber possesses a DIN or PAN according to the latest adjustments and modifications.
- No Need to Mention SRN: Names reserved in Part A of SPICe+ do not require mentioning SRN because they will be displayed automatically when Part B is filed following Part A.
- Each subscriber is an Indian national. Foreign nationals as subscribers, provided they can provide proof of a valid business visa along with their DIN and DSC. Non-individual subscribers based in India.
- Physical Copies of Documents: Physical copies of the Memorandum of Agreement (AoA) and signed copies are required in certain situations, such as when the individual outsourcers' initial subscribers are based outside of India or if they lack a legitimate business practice.
FAQ's
The profits may generally be distributed as dividends based on the number of shares that each shareholder owns.
Yes, by delisting and repurchasing all of the distributed shares, a publicly traded company can go private once more.
A puclic limited company is taken care by it’s board of directors that are appointed by the shareholders/owners of the company.
A private company cannot sell its shares like a limited company, which is listed on the stock exchange to raise money.
A Public limited may have no fewer than three directors and no more than fifteen.