A public limited company under the Companies Act 2013 is a limited liability company and shares are publicly traded. Its shares can be purchased privately through an initial public offering (IPO) or through trading on a stock exchange by anyone.
Here in this article, you will get to know about the registration of public limited company. Read on.
Public companies are highly regulated and must disclose their financial position to shareholders.
How Is a Public Company Registered
- Digital Signature Certificate (DSC)
Since the company’s registration process is absolutely online, a digital signature is required before the form is submitted to the MCA portal. A DSC is required for all proposed directors and memorandum and charter signatories.
- Director Identification Number (DIN)
It is the identification no. of the director. Anyone who wishes to become a director of a company must obtain it. The proposed managing director’s DIN must be listed on the company registration form in addition to proof of name and address.
- Registration on the MCA Portal
To apply for company registration, it is completed SPICE+ form must be submitted to the MCA portal. In order to complete the SPICe+ form and submit the required documents, company directors must be registered on the MCA Portal. After completing the registration process, Directors are granted access to MCA Portal services, such as submitting electronic forms and viewing public documents.
- Incorporation Certificate
After the application for registration has been submitted with the relevant documents, the Registrar of Companies will review the application. After the application is examined, then they issue the Articles of Incorporation of the joint-stock company.
What Are the 4 Characteristics of a Public Limited Company
More capital
Anyone can invest in a public company because the stock is open to the public. Therefore, the company’s capital is improved.
More attention
Listing on an exchange allows mutual funds, hedge funds, and other traders to recognize a company’s business. This could lead to better business opportunities for listed companies.
Spread risk
The shares are sold to the general public, thus spreading the unsystematic market risk.
Opportunity for growth and expansion
Due to the low risk, there is a great opportunity to grow and expand your business by investing in new projects with funds raised through equity.
Where Do You Register a Public Company
In order to complete the SPICe+ form and submit the required documents, company directors must be registered on the MCA Portal.
What Are the Documents Required for Registration of a Public Company
Here are some documents required for registration of a public company:
- Identification of all shareholders and directors.
- Proof of address of all directors and shareholders.
- PAN numbers of all shareholders and directors.
- Utility bill of the proposed office i.e. the company’s proposed registered office.
- NOC (No Objection Certificate) from the landlord where the company’s office is located.
- Director Identification Number (DIN) for all directors.
- Digital Signature Certificate (DSC) for all directors.
- Memorandum of Association (MOA).
- Articles of Association (AOA).
What Is the Maximum Number of Members in Public Company
There is typically no maximum limit on the number of shareholders or members in a public company. Public companies can have an unlimited number of shareholders, and new shares can be issued to raise capital or to allow new investors to buy into the company.
What Is the Minimum Number of a Public Company
The minimum number of shareholders for a public company varies depending on the jurisdiction in which the company is incorporated.
A public company must have at least one shareholder. Some jurisdictions have a higher minimum requirement, such as two or more shareholders.
What Is Compulsory for Public Company
A public company, also known as a publicly traded company or a public limited company (PLC), is subject to a number of regulations and requirements. Some of the key requirements for a public company include:
- Financial reporting: Public companies are required to file regular financial statements, such as annual and quarterly reports, with regulatory authorities. These reports must be audited and made available to the public.
- Corporate governance: Public companies are subject to strict corporate governance rules and regulations. This includes the requirement for a board of directors, an auditor, and a secretary.
- Disclosure: Public companies are required to disclose certain information to the public, such as information about their operations, financial performance, and management.
- Shareholder meetings: Public companies are required to hold annual shareholder meetings, and shareholders have the right to vote on important matters such as the election of directors and approval of major transactions.
- Insider trading: Public companies are subject to insider trading laws, which prohibit the buying or selling of a company’s stock by corporate insiders based on non-public information.
- Listing: Public companies are required to list their shares on a stock exchange and allow the public to buy and sell shares in the company.
What’s the Difference between PLC and Ltd
PLC and Ltd are both types of business entities, but they are used in different countries.
A PLC (Public Limited Company) is a type of business entity that is commonly used in all countries. PLCs are publicly traded companies that have issued shares of stock that can be bought and sold on the open market. They are required to have at least one shareholder and are required to follow strict financial reporting and governance rules.
Ltd, or Limited, is a type of business entity that is commonly used in other countries. Ltd companies are privately held, meaning that their shares are not traded on a public exchange. They are required to have at least one shareholder but have less strict financial reporting and governance rules than PLCs.
Frequently Asked Questions (FAQs):
Who is the owner of a public limited company?
A public limited company (PLC) is owned by its shareholders.
How many directors are required for a PLC?
The number of directors required for a public limited company (PLC) can vary depending on the jurisdiction in which the company is incorporated. In general, most countries require at least two or more directors for a PLC.
Conclusion
Now you got to know registration of public limited company.Public companies can have an unlimited number of shareholders, and new shares can be issued to raise capital or to allow new investors to buy into the company.
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