A public limited company (PLC) is a corporation that is publicly traded on the stock market and offers shares to the general public. PLCs are governed by the Companies Act of 2013and are subject to stricter regulatory standards than private limited businesses. These standards include financial reporting, transparency duties to shareholders, and corporate governance norms. PLCs must also have a minimum amount of capital and at least seven shareholders. There is a requirement under the Act for PLCs to issue a prospectus.
BENEFITS,
- Raising financing: PLCs can raise money from general public unlike private limited.
- Bargaining power: PLCs are often large, well-established, and reputable, which gives them more bargaining power.
- Growth opportunities: PLCs can use the funds raised from public to expand and improve operational efficiency.
- Flexibility in shareholder structure: PLCs can have a minimum of seven shareholders, but there is no limit on the maximum number.
DOCUMENTS REQUIRED FOR REGISTRATION
- Identity Proof for Shareholders and Directors: Acceptable forms of identification including Aadhar cards, PAN cards, or voters IDs for all shareholders and directors.
- Address Proof for Shareholders and Directors: Documents proving residence are required for all members.
- PAN Card Details: These are needed for all directors, shareholders, and members of the company.
- Company Office Address Proof: This can be a recent utility bill (not older than two months) that confirms the location of your company office or business premises.
- Landlord's Consent Letter: A letter from the landlord of your business premises giving permission for your company to operate from that location.
- Digital Signature Certificates (DSC): Required for all designated directors to authenticate documents digitally.
- Foundational Documents: Copies of the company’s Articles of Association (AOA) AND Memorandum of Association (MOA).
REGISTRATION PROCEDURE
Step 1: Obtain Digital Signature Certificates (DSC)
Before starting the registration process, obtain Digital Signature Certificates (DSC) for all proposed directors and subscribers to the memorandum and articles of association. DSC is essential for filing the forms online on the Ministry of Corporate Affairs (MCA) portal.
Step 2: Apply for Director Identification Number (DIN)
Each proposed director must have a Director Identification Number (DIN). This can be applied by using SPICe form, which also simplifies the application process. You need to provide proof of identity and address as part of the DIN application.
Step 3: Check Company Name Availability
Use the MCA online portal to check if you are the desired company name is available. It is important to ensure that the name does not infringe upon any existing trademarks or is not already in use. This step is crucial as it establishes the unique identity of your company.
Step 4: File SPICe+ Form
Once the name is approved, proceed to file the SPICe+ form. This comprehensive form is designed to cover all legalities for the incorporation of a company. Along with this form, you will need to submit the Memorandum of Association (MOA) and Articles of Association (AOA).
Step 5: Certificate of Incorporation
After the submission of the SPICe+ form and necessary documents, the Registrar of Companies (ROC) will review the application. Upon successful verification, the ROC issues a Certificate of Incorporation. This certificate is a legal document that marks the birth of the company and includes the company’s Corporate Identification Number (CIN) and the date of incorporation.
Step 6: Apply for PAN and TAN
With the incorporation certificate in hand, the next step is to apply for the company’s Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN). These are essential for all tax related transactions and compliances.
Step 7: Open a Company Bank Account
Finally, open a bank account in the name of the company. You will need a Certificate of Incorporation, MOA, AOA, PAN, and other relevant documents to set up the bank account. This account will handle all monetary transactions of the company.
