Public Limited Company(PLC) is Limited Liability and offers shares to the general public. These shares are traded in the stock market or issues fixed deposits. The Public Limited Company which comes under the Companies Act, 2013. If you want to register for Public Limited Company then they must have a minimum 3 Directors, 7 Shareholders, maximum 50 Directors and need rupees 5 lakhs of paid-up capital. A Public Limited Company have all the advantages like Private Limited Company.
There are many of the characteristics of the Public Limited Company like;
- Directors: According to the Companies Act, 2013, to start up a Public Limited Company you must require a minimum of 3 Directors and there can be an increase in a number of Directors in the future.
- Limited Liability: The liability of each shareholder is limited. In simple words, a shareholder of a Public Limited Company isn’t personally responsible for any loss of the company for any amount greater than the amount invested by them.
- Paid Up Capital: A Public Limited Company is required to have a minimum paid-up capital of Rs. 5 lakh or such higher amount as prescribed under the act.
- Prospectus: A Prospectus is a legal document which is drafted by Public Limited Company that includes securities for sale, investment shares and many more. This is made for the Public especially.
- Name: This requirement comes under the Companies Act, 2013 which is a must for all the public companies to add the word “limited” after their name.
Advantages of Public Limited Companies
There are many benefits of the Public Limited Companies like;
- More Capital: It’s a very good benefit that any person can invest in a Public Limited Company because of which the company capital will be increased more than before.
- Continuity of Existence: The life of the Public Limited Company is never stopping it. It is not affected by the status of the shareholders and even after the death of the shareholder. This Public Limited Company continues to exist.
- Borrowing Capacity: A Public Limited Company enjoys an unlimited source for the borrowing of funds. The Public Limited Company can issue debentures, equity and can also accept deposits from the public.
Documents Required for Public Limited Company
There is a process of registration of Public Limited Company which are different from Directors to Shareholders.
- PAN Card, Passport and Election ID Card.
- Latest Bank Statement/Telephone or Mobile Bill.
- Voter’s ID/Passport/Driver’s License.
- Passport size photograph of all Directors and shareholders.
- Scan copy of the signature and it should be same as on the PAN card.