A public limited company is popularly known as ‘Limited Company’. It is a company limited by shares. There are no restrictions on the maximum number of shareholders, the acceptance of public deposits and transfer of shares. The liability of each shareholder is limited to the unpaid amount of shares, the premium thereon and the face value of the shares held by them. The liability of a director/manager of such a company may, however, be unlimited at times.
Public Limited Company vs Private Limited Company
A public company can sell its own shares to the general public whereas a private company can sell its own privately held shares to a few investors who are willing to purchase the same.
Requirements & Procedure for Registration of PLC
Below are the requirements:
A minimum of 3 directors
A minimum of 7 shareholders
A minimum share capital of Rs. 5 lacs
A digital signature certificate(DSC)
DIN (Director identification number) of directors
An application for selection of name of company
An application comprising of the main object clause of the company
Submission of application to the ROC along with required documents such as the MOA, AOA, duly filed Form DIR-12, Form INC-7 and Form INC-22 is needed
Payment of the registration fee to ROC
Upon the submission of the documents and the required payment made to the ROC, the company should apply for the ‘certificate of commencement of business‘. The ROC issues the certificate upon verification of the entire procedure.
Post Registration Compliances
Below are the post-registration compliances for a Public Limited Company:
Hold first board meeting within 30 days of its incorporation by giving a notice of minimum 7 days.
Open a bank account in the name of the company and confirm whether subscription money has been received or not
Pay stamp duty on shares as per the law
Maintain statutory registers under various provisions of this act
Make application to the income tax department for the purposes of arranging the PAN.
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