Key Features:

1.       Limited Liability: Shareholders are only liable for the company's losses up to their investment amount.

2.       Perpetual Succession: Changes in ownership won't disrupt the company's operations.

3.       Listing on Stock Exchange: Public companies can raise funds through public offerings and get listed on stock exchanges.

4.       Transferable Shares: Shares of a public company can be easily bought and sold among members and non-members.

5.       Disclosure & Transparency: Public companies adhere to strict disclosure requirements, making their financials accessible to the public.

6.       Minimum Directors & Shareholders: Public companies require a minimum of 3 directors and 7 shareholders, with no maximum limit on shareholders.

Reasons to Opt for a Public Limited Company

#1. Unlimited Membership: Enjoy the flexibility of having an unlimited number of members in your company.

#2. Limited Liability: Despite having unlimited members, directors' liability in a public limited company is limited to their respective stakes in the company.

#3. Enhanced Transparency: Public limited companies maintain a higher level of transparency by separating management from ownership.

#4. Property Rights: A public limited company can own and manage its property independently in its own name, without any shareholder claims.

Documents Needed for Public Limited Company Registration:

When registering a company, the document requirements are straightforward and convenient. Here's what you'll need under MCA:

Director's Documents:

1. Photograph
2. PAN Card
3. Aadhar Card
4. Address Verification*
5. Identity Confirmation**

Registered Office Address Proof:

1. Latest utility bill (electricity or any other) in the owner's name
2. Rental agreement between owner and company promoter OR
3. No Objection Certificate (NOC) from Owner (if owner is also the company's promoter)

*Address Proof Options: Bank Statement, Electricity Bill, Telephone Bill, Mobile Bill. (Any document not older than 2 months).

**Identity Proof Options: Driving License, Voter ID card, Passport. (Any one of these).

Public Limited Company Incorporation Process:

 STEP 1: Submit Required Documents & Information via our web portal.

STEP 2: Select a Package and Make Payment online using various payment modes provided.

STEP 3: We'll proceed to apply for Digital Signature and Director Identification Number (DIN) for proposed directors.

STEP 4: Check Company Name availability and apply for Name Approval.

STEP 5: Prepare Memorandum of Association (MOA), Articles of Association (AOA), and other necessary incorporation documents.

STEP 6: File incorporation documents and obtain Certificate of Incorporation, PAN, and TAN.

Benefits of Public Limited Company Registration in India:

·       Easy Fundraising: Public Limited Companies can issue shares to the public, facilitating rapid expansion and growth.

·       Continuous Existence: The company remains intact despite the death or departure of its shareholders or directors, ensuring business continuity.

·       Enhanced Governance: Public Limited Companies adhere to strict regulations, promoting better corporate governance and accountability.

·       Share Liquidity: Shares of a Public Limited Company can be easily traded on the stock exchange, providing shareholders with increased transferability and liquidity of their investment.

·       Tax Advantages: Public Limited Companies and their shareholders can benefit from various tax incentives, contributing to overall financial advantages.

 

Annual Compliance Requirements for Unlisted Public Limited Companies:

 

1. **Board Meetings**: The company must conduct a minimum of four board meetings annually to discuss various matters, including the appointment or reappointment of auditors.

 

2. **Appointment of Cost Auditor**: The company needs to appoint a Cost Auditor and inform the Central Government about the appointment within a specified time frame. This includes filling out Form CRA-2 and adhering to Section 148(3) of the Companies Act, along with relevant rules.

 

3. **Return of Deposits (DPT)**: The company is required to file the Return of Deposits with the Registrar of Companies (ROC) by June 30th each year, as per Rule 16 of the Companies (Acceptance of Deposit) Rules, 2014.

 

4. **Appointment of CEO/CFO/CS**: Any appointment or casual vacancy of the CEO, CFO, or CS should be made within the stipulated time frame after the Annual General Meeting. Necessary forms such as MGT-14 and DIR-12 need to be filed accordingly.

 

5. **Annual General Meeting (AGM)**: The company must convene its AGM within nine months of the end of the financial year, in compliance with Section 96 of the Companies Act, 2013.

 

6. **Special Resolution**: Any special resolution passed at the AGM must be filed within 30 days of its passing, as per Section 117 of the Companies Act, 2013.

 

7. **CSR Committee**: The company's CSR Committee must convene at least four board meetings annually with a minimum gap of 120 days between each meeting, to discuss and approve CSR activities.

 

7.       **Director's Disclosure**: Directors are obligated to disclose their financial interests in the company using Form MBP-1, in accordance with Section 184(1) of the Companies Act, 2013 and related rules.

Annual Compliance Requirements for Listed Public Limited Companies

1. **Annual General Meeting (AGM)**: The company must hold its AGM in accordance with the Companies Act, as specified in Form MGT-15. This should be done within 30 days from the date of incorporation.

   2. **Financial Statements**: Prepare and submit various financial documents, including the balance sheet, directors' report, cash flow statement, auditor's report, and consolidated financial statements, in XBRL format using Form AOC-4. This must be done within 30 days of holding the AGM.

    3. **Annual Return**: Provide information about directors and shareholders to the Registrar of Companies through Form MGT-7, within 60 days of the AGM.

    4. **Financial and Directors Report**: Adopt financial and directors reports in compliance with Section 173 and Secretarial Standards 1. The necessary form, MGT-14, should be filed within 30 days from the board meeting.

    5. **Income Tax Returns**: Submit income tax returns to the Tax Department using Form ITR-6. This should be done on or before September 30th of the financial year.

         6. **Secretarial Audit Report**: Submit the Secretarial Audit Report along with the Board Report if  the total paid-up capital equals or exceeds Rs. 50 crore, or if the annual turnover surpasses Rs. 250 crore. This should be completed before the appointment or reappointment of Secretarial Auditors, using Form MR-3.

         7. **SEBI Compliance**: Adhere to all rules and regulations set forth by SEBI, including the Listing Regulations of 2015. Compliance with SEBI regulations is imperative for listed companies to maintain their legal status.

 

Public Limited Company and Private Limited Company differ mainly in their ownership, governance, and regulations:

·       **Ownership and Shareholders**:

   ­Public Limited Company­: Can have an unlimited number of shareholders and can raise capital by offering shares to the public through a stock exchange. Shares are freely transferable.

   ­Private Limited Company­: Limited to a maximum of 200 shareholders and cannot offer shares to the public. Shares are usually held by a small group of individuals, often the company's founders, families, or a small group of investors. Share transfer is restricted by the company's articles of association.

·       **Minimum Capital Requirement**:

   ­Public Limited Company­: There is usually a higher minimum capital requirement for incorporation compared to a private limited company. This capital requirement may vary depending on the jurisdiction.

   ­Private Limited Company­: Generally has a lower minimum capital requirement for incorporation.

·       **Disclosure and Reporting Requirements**:

   ­Public Limited Company­: Subject to more extensive disclosure and reporting requirements imposed by regulatory authorities, such as filing audited financial statements, annual reports, and other disclosures for public scrutiny.

   ­Private Limited Company­: Faces fewer disclosure requirements compared to public companies. They usually have simpler reporting requirements and may not be required to disclose financial information to the same extent as public companies.

·       **Governance**:

   ­Public Limited Company­: Governed by a board of directors elected by shareholders. The board's decisions are subject to scrutiny by regulatory bodies and shareholders.

   ­Private Limited Company­: Typically has a more flexible governance structure. The owners often have more control over decision-making processes and operations.

·       **Transferability of Shares**:

   ­Public Limited Company: Shares are freely transferable, and ownership can change hands easily through buying and selling on the stock exchange.

   Private Limited Company­: Share transfer is restricted, and the consent of existing shareholders or directors may be required before transferring shares.

·       **Regulatory Compliance**:

   Public Limited Company: Subject to stringent regulatory compliance requirements imposed by government authorities and stock exchanges to protect the interests of shareholders and the public.

   Private Limited Company: Generally subject to fewer regulatory obligations and may have more flexibility in operations and decision-making.

In summary, while both types of companies offer limited liability protection to their shareholders, they differ in terms of ownership structure, governance, regulatory compliance, and access to capital markets.