A Public limited company is one where shares of stock are issued to the general public.
It is registered under the Companies Act of 1980 and offers limited liability to all the stakeholders involved, which reduces risk to a huge extent.
It enjoys larger amount of capital:It enables raising capital by issuing shares to the public. This implies that a public company can accumulate far more capital than a private firm ever could.
Greater scope for growth:Because of a huge funding and capital, a public company also has greater prospects to grow and expand, undertake new projects, eliminate competition by buying off more rivals, and spend a considerable amount in the R&D sector, which is crucial to any business.
Transferability of shares:The shares are more easily transferable in a public limited company as compared to those in a private one. This basically means that shareholders benefit from liquidity, and thus compel more people to invest.
Exit strategy:For a public limited company, the exit option is more readily available to them, without the risk of losing major assets owing to a higher transferability of shares and increased visibility of the business.
Limited liability to owners and shareholders:The directors do not have to bear the business debts as a personal liability. His liability is limited to the investment of the company. This is not available in other business incorporation models.
It enjoys continuous existence & separate legal entity:Private Limited company itself separate by its Unique name, Assets, Pan No. or Bank accounts. Everything is separately created for a company. PLC will continue forever, its existence will not get affected from death, retirement, insanity of one or more members in PLC.
More liability:Because public money is involved, they are held to higher standards than their counterparts in terms of transparency.
Strict Regulation:Undemocratic control, strict regulations and scope of promotional frauds are a few shortcomings of Public Limited Company registration.
Under constant scrutiny:They are also very thoroughly overlooked by the media and stakeholders.
- Because there is public money involved, it provides a public limited company with the opportunity to divide and spread the risk equally within a large number of shareholders, which enables them to sell profits, but still hold a significant stake in the company.
- The registration is fairly easy and uncomplicated, and hence all the more transparent and transparency is in running a public limited company. The entire process can be completed in 7-15 days.
- Adding PLC at the end of the name of a company adds a sense of prestige and credibility.
- Credibility and confidence are reinforced.
- You can start your PLC company by your Home Address; there is no need to have commercial space for registration in PLC format.
- FDI is allowed in PLC, as foreigners can invest directly through Automatic Format of PLC. (advisable According to country)
- You can create PLC with NRI, Foreigner, or any Business entity. This option is not available in other incorporation Format.
To form a public limited company, one must have at least seven shareholders, and three directors, with no defined upper limit. Following are the documents that are required to register a public limited company:
- Identity Proof of all the directors and shareholders.
- Address Proof of all the directors and the shareholders.
- PAN card of all the directors and shareholders.
- Utility Bill of the office that you have proposed as your registered office as your public limited company.
- A no-objection certificate from the landlord of your registered office
- DSC (Digital Signature Certificate) of the directors
- DIN (Director Identification Number) of all the directors.
- Memorandum of Association
- The Article of Association
Passport Size Photograph of all Directors & Shareholders
PAN Card of all Directors & Shareholders
Self-Attested ID Proof of all the Directors
(Driving License/Passport/Voter ID)
Passport Copy of Directors & Shareholders (If they have)
Residence Proof of Shareholders
Electricity Bill or Other Utility Bill for Address Proof
Rental Agreement or Sale Deed of Business Place
- We deliver end to end consultation before you accept this model of creation for your start up. How taxes impact you, etc. We will absolutely guide you on registration & licenses which are required with this option, for example, MSME & Trademark prominence in registering an OPC company in India.
- We are specialised in MCA matters and we will draft the matters & terms in most legal form. FDI & Foreign partner investment are the difficult approval procedures in LLP, we will consult you on each step of it.
- Also, we handle all the compliance work beginning from managing accounting work, GST return filings, income tax matters and annual audits if Applicable.
- We will constantly support you on all monetary needs of the organisation and assist you according to the requirement.
- Generally, it takes 10 to 15 days procedure for registering this kind of business model & further it depends all on the authorities & requirements of client.