PUBLIC LIMITED COMPANY

Thinking big? A Public Company could be your key to establishing a business empire. These companies throw open their doors to investors from around the world, driving world progress and innovation. A Public Limited Company (PLC) is a well-liked business form for giant-scale businesses that seek to raise capital from the general public by means of shares. Registered under the Companies Act, a public company has limited liability, separate legal personality, and the ability to be listed on stock exchanges. With disclosure, credibility, and access to broader funding, public companies form the backbone of large industries.

Documents Required

1. Documents required of Directors and Subscribers:

2. Registered Office Documents:

3. Other Documents:

PAN Card / Passport
Residential Proof
Passport-sized photographs

Rent Agreement / Lease Agreement
NOC from owner
Utility bill (electricity/water/gas bill – not older than 2 months)

Declaration by subscribers and first directors (Form INC-9)
Declaration by a professional (CA/CS/CMA) through Form INC-14.
Consent to act as Director (Form DIR 2)

Registration Process

Obtain DSC
Apply for DIN
Application for name availability
Drafting of MOA & AOA
File SPICe+ Part B for Incorporation

FAQs

Sectors like banking, insurance, telecom, defence, and NBFCs require prior regulatory approvals (RBI, IRDAI, DOT, etc.) for incorporation but business cannot commence without licenses.

Before listing, a company must comply with: minimum paid-up capital, track record, net worth, minimum public shareholding and disclosure.

Non-filing leads to financial penalties for the company and its officers, risk of director disqualification, and possible company strike-off or prosecution under the Companies Act.

Public companies can attract NRI/FDI through Stock Market Investments, Private placements or preferential allotments, Complying with FEMA, RBI, and SEBI regulations.

Ownership is determined by shareholding percentage, and control is exercised through and by Promoters, Board of Directors, Institutional investors, and voting rights at general meetings.

Buybacks must comply with Companies Act, 2013 (not exceeding 25% of paid-up capital & free reserves per financial year) and Board approval is needed for small buybacks and shareholder approval for larger ones.

Yes, cross-border mergers are possible under Companies Act, 2013 and requires RBI approval and compliance with prescribed rules.

Equity crowdfunding is not legally permitted for public offerings in India. Public companies must raise capital via SEBI-approved IPOs, FPOs, or qualified institutional placements.

Public company appoints independent directors to represent minority interests. Such minority shareholders can file class action suits under Section 245 of the Companies Act, 2013, or seek relief from the National Company Law Tribunal (NCLT).

The company and defaulting officers become liable to monetary penalties, and the company remains non-compliant in the eyes of SEBI and the Ministry of Corporate Affairs, with additional penalties for ongoing non-compliance.