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Under section 2(71) of the Companies Act, 2013, a public company is understood as an entity which is not classified as a private limited company. Apart from this, the minimum paid-up share capital of a public company is prescribed as per the requirement of the companies act. A public company can also be understood as an entity, which is not a subsidiary of a private limited company.

In India, there are three types of limited company: a public limited company, a private limited company, and a one-person company.

What is a Public Limited Company?

A Public Limited Company is defined under Section 2(71) of the Companies Act, 2013 as:

  • a company which is not a private company
  • a company with a minimum paid-up share capital of INR 5 lakhs.

Note : Under the Companies Act, 2013, a subsidiary company shall be deemed to be a public company if it is not a subsidiary to a private company, even if it is a private company as per its article.

Documents Required for PLC Registration

  • Passport sized photographs of all the Directors
  • Copies of the Identity documents of all the Directors- Aadhar Card, Voter Card, PAN card
  • DSC (Digital Signature Certificate) of all the Directors
  • DIN (Director Identification Number) of all the Directors
  • In case the office is in a rented property – the rent agreement
  • In case the office is an owned place – the property ownership documents
  • The water bill and the electricity bill of the business place
  • No Objection Certificate by the Landlord
  • Memorandum of Association (MoA)
  • Articles of Association (AoA)

It is necessary that all the documents pertaining to registration of a Public Limited Company are in order to avoid any legal complications later on.

Requirements for Incorporating a PLC

  • Minimum Paid-up share Capital         -                                   INR 5 lakhs
  • Minimum number of Directors -                                            3
  • Maximum number of Directors -                                50
  • Minimum number of Shareholders -                          7
  • Maximum number of Shareholders -                         No Limit
  • Digital signature certificate (DSC) of one of the directors are needed while, submitting self-attested copies of identity and address proof.
  • Directors of the proposed company will need a DIN.
  • For the selection of company name, an application is required to be made.
  • An application comprising the main object clause of the company is to be made. This object clause will define what a company will pursue after its incorporation.
  • Submission of the application to ROC along with the required documents like MOA, AOA, duly filled Form DIR – 12, Form INC – 7 and Form INC – 22 are needed.
  • Payment of the prescribed registration fees to the ROC is required.
  • After obtaining approval from the ROC, the company should apply for the ‘certificate of business commencement’.

Process for PLC Registration

The process for public limited company registration is similar to private company registration. The following steps are required to be followed for public limited company registration:

  • Application for DSC (Digital Signature Certification)
  • Application for Din ( Director Identification Number)
  • Name Availability of Company
  • Filing Memorandum of Association and Articles of Association Online
  • Application for PAN and TAN
  • Certificate of Incorporation
  • Opening Bank Account
  1. Application for DSC: The first step in making an application for company registration is applying for a digital signature certificate. A digital signature certificate is a legal document which is used now days for verification of information. Usually the digital signature certificate is used for signing some electronic documentation. When incorporating a company, the first step is to apply for the DSC with the Ministry of Corporate Affairs.
  2. Application for DIN (Director Identification Number): Once you have applied for the DSC, it is crucial to apply for the director identification number. The DIN would indicate that all compliances have been met by the company when recruiting a director. The applicant for company registration has to apply for the director identification number for the company.
  3. Name Availability of the Company: Next step is to check the company name. This process is mandatory under company registration. When you check the name of the company, the portal will intimate you if the name is already chosen and not going against any provisions of intellectual property law in force in India. Checking the name availability of the company can be carried out online on the MCA portal.
  4. Filing Memorandum of Association and Articles of Association Online: The applicant for company registration has to file documents such as the memorandum of association and articles of association online. Filing these documents would provide legal certainty of formation of the company. This process must be carried out through the Ministry of Corporate Affairs Portal.
  5. Application for PAN and TAN: After all filings are complete, the applicant must consider applying for securing a PAN and TAN number.
  6. Certificate of Incorporation; Once everything is over, the MCA and ROC will review the application and if there are no issues, then a certificate of incorporation would be granted to the applicant. The certificate of incorporation is a legal document which provides some form of legal status to the company.
  7. Opening a Bank Account: After securing the certificate of incorporation, the applicant must open a bank account in the name of the organisation. This would be required for carrying out transactions on behalf of the company. Hence a corporate bank account must be opened by the applicant.

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