Public Limited Company

Public limited company formation is almost similar to a private limited company except minimum requirement of directors and members are 3 and 7 respectively.

A limited company grants limited liability to its owners and management. Being a public company allows a firm to sell shares to investors this is beneficial in raising capital

Entrepreuner prefer to incorporate Public Limited company becasue of its many advantages, for example –

Can raise fund by issue of share to public.
Option to get listed in recognised stock exchanges in India and issue IPO
Shares are freely transferable without any restriction
There is no limitations of no. of member/shareholders

But, a Public limited company has to do few additional ROC compliances and core compliances with Stock exchange and SEBI, if it is listed. Hence the Compliance cost is higher as compare to a Private limited company.

Features of a Private Limited Company (PLC)

Minimum 3 Directors & Maximum 15.
No limitation for number of Members/shareholders
Can raise fund from public by issuing share subject to compliance of other provisions of the Act
All the Public companies to use the word limited after its name
Prospectus– Prospectus is a detailed statement of the company affairs which is issued by a company for its public. Thus, in the case of Public limited company, there is a need to issue a prospectus. However, in case of Private limited Companies, public
All other features of a Private Limited Company Shall apply here as well.

Documents Requirement for Public Limited Company

Identity and Address Proof

Photographs of all Proposed Shareholders & Directors

PAN card Copy of all Proposed Shareholders & Directors

ID Proof – Driving License / Voter ID / Passport (anyone) of all Proposed Shareholders & Directors

Address Proof – Bank Statement / Telephone or Mobile or Electricity Bill (not more than 30 days old) of all Proposed Shareholders & Directors

Email ID and Mobile Numbers of all Proposed Shareholders & Directors

Aadhar card ( Optional )

Registered Office Proof

Scanned copy of the latest bank statement/telephone or mobile bill/electricity or gas bill

Scanned copy of notarised rental agreement in English

Scanned copy of no-objection certificate from the property owner

Scanned copy of sale deed/property deed in English (in case of owned property)

Professional Fees

Our Service Coverage

After Company incorporation, you will receive below documents

Company Certificate of Incorporation
Memorandum of Association & Article of Association (MOA & AOA)
PAN Card and TAN Allotment
EPF & ESI Registration
Digital Signatures (Class 2)
Directors Identification Number (DIN)
Assist in Bank A/c Opening
Professional Tax Registration ( in Maharastra Only)
GST Registration (Optional)

Documentation & Finalise Name

First we collect documents and then send you few papers for your signature on email. Then we collect scan copy of Signed Papers from you on email. Side by side we finalise 2 proposed name of company #We can complete this in day 1

DSC apply Meanwhile we apply for Digital Signatures of all directors/shareholders. #We can complete this in day 1
Incorporation Filing In day 2 we file Incorporation form with ROC. All Forms certified by CA or CS or CMA.
Company Approved Generally ROC approve incorporation application in 1-2 days. Once your application approved, you will get certificate, PAN, TAN etc.

Pre-requisite for Company Incorporation

Proposed Company name must be unique. The suggested name should not match or identical with any existing companies or trademarks in India. # We help here to choose name.
All Proposed Directors must have Active DIN
Digital Signature for proposed Directors/Shareholders
Decide Paid-up Share Capital and share % between Shareholders
Decide Authorised Share Capital. ROC Fee & Stamp duty based on Authorised Capital. Low Capital – Less Govt Fee.
Decide Company Registration State and Office address
Decide Bank Authorised Signatory and Bank name to open your account (ICICI, BOb, Kotak, PNB)

What are the various Compliances you need to do post incorporation of a Public Limited Company

Apart from other statutory compliances like GST, InCome Tax, etc., A Public limited company must comply below without any delay.

File Commencement of Business (COB) e-form INC 20A within 180 days of incorporation.
Appointment of an Statutory Auditor ( Practicing Chartered accountant) for Auditing Books of accounts and issue audited Annual Financial Statement.
Filling of ROC Annual Forms
Filing of Director e-KYC

IF the Company is listed in recognosed stock exchange, then need to company listing agreement provisions, and all other compliances of SEBI, Stock Echanges, and ROC.

Why you may need Public Limited Company?

Easy to Raise Capital

Raising capital is much easier for a public limited company through public subscription as well as stock market (if listed)

Lower risk

As the number of shareholders is quite large, the risk borne by each shareholder is considerably low.

Limited Liability

Directors and Shareholders have no personal liabilities. Limited Liability protects the personal wealth of the shareholders and directors therefore owners will never lose more that they have invested.

Brand Recognition

A public company can get its shares listed in a stock exchange therefore; people will be able to easily and quickly recognize the brand or name of the company. The more brand recognition a company has, the more business it will have.

Democratic Management

Management of the company is not confined to few persons. Shareholders have powers to elect and remove directors and they can exercise control over management in general meetings of the company.

get in touch

Contact Me

Get My Weekly tips on how to get ahead

At Startup Saarthi, we’re more than just consultants; we’re your ultimate business companion. Our seasoned team of experts is here to guide you through every stage of growth, from ideation to scale.

Useful Links

Subscribe Now

Don’t miss our future updates! Get Subscribed Today!