According to the Companies Act, a public limited company must appoint at least three directors, with no upper limit on the number. The board of directors plays a crucial role in governing the company's management and strategic decision-making.

It is a legal requirement for all public limited companies to include the word "Limited" in their company name. This designation indicates that the company is legally a public entity, capable of trading shares on the stock market and open to investment by the public.

Public limited companies are required to prepare and issue a prospectus. This document offers a detailed look at the company's operational activities and financial health, providing essential information to potential investors and aiding their decision-making process.

While the Companies Act stipulates various regulations for public limited companies, it does not impose a minimum initial share capital requirement for registration. This absence of a specified minimum allows companies the flexibility to set their capital structure according to their specific needs and strategic objectives.

This type of public limited company has its shares actively listed and available for trading on one or more stock exchanges. This accessibility allows the public and various financial entities to buy and sell the company's shares, providing greater liquidity and exposure to a diverse pool of investors.

Unlike its listed counterparts, an unlisted public limited company does not have its shares traded on any stock exchange. As a result, its shares are not as easily transferable, and the company does not experience the same level of public scrutiny or regulatory requirements as a listed company. This category of public limited company may appeal to businesses seeking to benefit from a broader base of shareholders while avoiding the complexities of full public trading.

The minimum members in public company to form a PLC is seven shareholders, with no limit on the maximum number.

A minimum of three directors is required to establish a public limited company. Each director must possess a valid Director Identification Number (DIN).

The company should have a minimum authorised share capital of Rs. 1 lakh to meet the initial financial requirements for registration.

The registration process includes electronic submission of documents. Therefore, a Digital Signature Certificate of at least one director is necessary for authenticating documents submitted electronically.

The proposed name of the company must comply with the provisions of the Companies Act and Rules, ensuring it is unique and not already in use.

Key documents required include the Memorandum of Association (MOA) and Articles of Association (AOA). Additionally, Form DIR-12 must be duly filled to register the details of the directors.

These companies can raise funds by selling shares to the public, which provides a major boost in capital and makes it easier to fund expansion projects.

Public limited companies can raise money using a variety of financial options, thanks to strict regulations that give investors confidence in their investments.

The shareholders of a Public Limited Company are given limited liability protection. In a situation of unexpected liability, the same would be limited only to the company and would not affect the shareholders in any way.

Going public can help smaller companies grow by providing the funds needed for expansion and improving operational efficiency due to increased accountability.

While the minimum members in Public company are 7 shareholders, there is not upper limit for maximum members.

Shares of public limited companies can be bought and sold easily on the stock market, which attracts more investors and makes it simpler for existing shareholders to sell their shares if they choose.

Acceptable forms of identification include Aadhar cards, PAN cards, or voter IDs for all shareholders and directors.

Documents proving residence are required for all members involved.

These are needed for all directors, shareholders, and members of the company.

This can be a recent utility bill (not older than two months) that confirms the location of your company's office or business premises.

A letter from the landlord of your business premises giving permission for your company to operate from that location.

Required for all designated directors to authenticate documents digitally.

Copies of the company's Articles of Association (AOA) and Memorandum of Association (MOA).

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 for using the 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 your 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), which detail the constitution and rules governing the management of the company.

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 the 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.

Additional Steps

Depending on the nature of the business and the specific sector it operates in, you may need additional approvals or registrations, such as GST registration, import/export code, or industry-specific licenses.

Whatever licenses or registrations you require, the experts at Taxation Point India are here to assist you in starting your public limited company in India.