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Call ExpertEasily incorporate a Public Limited Company through IndiaFilings. A minimum of 3 Directors and 7 Shareholders are required to incorporate a Public Limited Company.
In India, a Public Limited Company (PLC) is a business structure suited for large-scale operations. Entrepreneurs who are planning for large-scale business operations can start a Public Limited Company registration in India. Unlike private companies, PLCs can raise funds from the general public by offering shares on stock exchanges. This allows them to access a wider pool of capital for growth. A Public Limited Company in India enjoys all the privileges of a corporate entity together with the features of Limited Liability.
Sunny Madaan & Associates can help you start your public limited company in India with ease and efficiency. Our comprehensive services cover everything from company registration to compliance management, ensuring a smooth and hassle-free setup process for your business.
A public limited company is a form of corporate entity that permits the general public to hold ownership stakes through publicly traded shares. These shares are commonly exchanged on established stock markets, enabling a diverse group of brokers, investors, and traders to buy and sell equity. This structure allows individuals from various backgrounds to invest and hold shares in the company.
Unlike private companies, public limited companies are governed by stricter regulatory and reporting standards. In India, the law governing public limited companies is primarily outlined in the Companies Act of 2013. The minimum members in public company is 7, and there is no limit on the maximum number of members /shareholders for starting a Public Limited Company.
The day-to-day operations are managed by an executive team, but the broader ownership lies with the many shareholders who invest in the companys stock. These shareholders typically have voting rights that include the ability to vote on the election of the board of directors. The board then selects the executive team tasked with managing the company’s ongoing business affairs.
Below are the fundamental characteristics of a public limited company:
Public limited companies are broadly categorised into two distinct types:
This type of public limited company has its shares actively listed and available for trading on one or more stock exchanges. This accessibility allows the public and various financial entities to buy and sell the company’s shares, providing greater liquidity and exposure to a diverse pool of investors.
Unlike its listed counterparts, an unlisted public limited company does not have its shares traded on any stock exchange. As a result, its shares are not as easily transferable, and the company does not experience the same level of public scrutiny or regulatory requirements as a listed company. This category of public limited company may appeal to businesses seeking to benefit from a broader base of shareholders while avoiding the complexities of full public trading.
When planning to register a public limited company, it is important to understand and adhere to the specific rules and regulations set under the Companies Act. Here are the key requirements for forming a public limited company in India:
Registering as a public limited company brings several key benefits:
Public limited company registration involves several structured steps that adhere to regulatory requirements. Here is a detailed guide to the procedure:
A Public Limited Company (PLC) in India is a publicly traded entity that requires a minimum of seven members, with no limit on the maximum number of shareholders. It allows shares to be offered to the public and traded on stock exchanges.
The Director needs to be over 18 years of age and must be a natural person. There are no limitations in terms of citizenship or residency. Therefore, even foreign nationals can be Directors in an Indian Private Limited Company.
You can start a Limited Company with any amount of capital. However, the fee must be paid to the Government for issuing a minimum of shares worth Rs.5 lakhs [Authorized Capital Fee] during the incorporation of the Company. There is no requirement to show proof of capital invested during the incorporation process.
An address in India where the registered office of the Company will be situated is required. The premises can be commercial/industrial/residential where communication from the MCA will be received.