Public Limited Company Registration

What is a Public Limited Company?

A public limited company (PLC) is a business structure that requires at least seven members and three directors for incorporation. At least one of the directors must be an Indian resident. This business structure offers liability protection against the company’s debts to its members.

Eligibility Criteria for Public Limited Company Registration

The eligibility criteria for public limited company registration online are as follows:

• A minimum of seven shareholders
• A minimum of three directors and at least one of whom must be an Indian resident.
• Digital signature certificate for all three directors to fill out online forms.
• Director identification number for all directors with a completely filed DIR-2 Form.
• An approved company name.
• Documents, namely memorandum of association (MOA) and articles of association (AOA).

Checklist- Who Can Register a Public Limited Company?

Indian and foreign entrepreneurs can register a public limited company. Top businesses that must open a PLC are as follows:

• Online retail and shopping stores.
• e-pharma and medicine research company.
• Medical equipment and hospitals.
• Car and electronics manufacturing.
• Food production and processing.
• IT tech and AI startups.
• Fintech and insurance institutes.

How To Register a Public Limited Company?

Scroll down and find out how to register a public limited company as described below:

• Choose a Business Activity
  You must select a business activity before formally applying for a public limited company set up. A PLC is suitable for large-scale operations and external fundraising.
• Name Reservation
  Corpbiz® consultants will help you reserve the company name by filing the SPICe+ Part A Form.
• Obtain a Digital Signature Certificate (DSC)
  A DSC is used to authenticate the identity of the directors and shareholders. We’ll help you apply for a certificate for all members of the company.
• Acquire a Director Identification Number (DIN)
  After obtaining a DSC, we’ll help you get DINs for all directors to complete public limited company formation.
• Draft MOA & AOA
  Our seasoned lawyers will assist you in drafting a memorandum of association (MOA) and articles of association (AOA). An MOA and an AOA are legal documents that form the corporate governance of your company.
• Fill Out SPICe+ Form
  We’ll help you file an application for incorporation, get your company name approved, obtain a PAN and GST number, enroll for provident fund & employee insurance, and a bank account through SPICe+ and AGILE-PRO Form.
• Receive the Incorporation Certificate
  After the Ministry of Corporate Affairs (MCA) reviews and approves the application, you’ll receive the public limited company set-up certificate.

Difference between private company and a public limited company

The distinction between the private and public companies in India as explained below:

Difference between a public company and limited liability partnership

The difference between a public company and an LLP are as follows:

Features of Public Limited Company Formation

The following are key features of a public limited company formation:

• A public limited company consists of three members that form the board of directors, who are responsible for the major decision-making of the business.
• The company’s name includes the term “Limited” to demonstrate its power to trade shares in the stock market.
• A public limited company issues a prospectus before raising funds through public trading. The document includes its financial health and operational stability.
• No minimum paid-up capital requirement after 2015 revision of the Companies Act, 2013.
• This business structure mandates at least 7 members for a public limited company set up.

Timeline for Public Limited Company Registration Online

The timeline for public limited company registration online is as follows:

• The name approval will be finalized in 2 to 3 days.
• You can obtain the digital signature certificate for all directors in 1 to 2 days.
• Draft the MOA & AOA and gather other documents mandatory for public limited company formation in 1 day.
• The ministry will examine and approve the SPICe+ application for incorporation, tax registration, and employee contribution in 4 to 10 days.
• Receive official documents in 2 to 3 days.

Compliance Needs After Public Limited Company Registration

Explore the post-registration compliance needs after public limited company registration online, as described below:

Income Tax Filing: Corpbiz® tax consultants will assist you in submitting the ITR-5 Form to fulfill your annual income tax obligations after public limited company formation.

Annual Returns: All PLCs are required to submit the MGT-7, meaning annual reporting of the business operations. The disclosure includes details on directors, shareholders, share capital, borrowings, and other corporate details.

Financial Reporting: Our finance analyst will help you make income statements, account books, balance sheets, and expense reports to file Form AOC-4 as part of your yearly accounting obligation.

DIR-3 KYC: Our associates will help you file the DIR-3 KYC every year by Sept. 30. The DIR-3 KYC is reported to the MCA to demonstrate the company’s governance as per the Companies Act, 2013.

Annual General Meeting: You must hold an annual general meeting (AGM) within six months of the public limited company registration. We’ll assist you in making agendas and recording minutes.

Appointment of an Auditor: After public limited company registration online, you must appoint an auditor and inform the Ministry of Corporate Affairs (MCA) by filing the ADT-1.