A Public Limited Company is a type of business entity that allows the public to purchase its shares. It is generally listed on a recognized stock exchange and offers limited liability protection to its shareholders.
Key benefits include:
- Access to funding by issuing shares to the public
- Greater trust and recognition in the market
- Eligibility for stock market listing
- Broader visibility and expansion opportunities
The usual documentation includes:
- Memorandum of Association (MoA)
- Articles of Association (AoA)
- PAN cards of directors and shareholders
- Proof of registered business address
- Identity proof of all directors and shareholders
- Digital Signature Certificates (DSC) for all proposed directors
A Public Limited Company is advised to have a minimum paid-up capital of ₹5 lakhs, however, it is not mandatory.
A Public Limited Company must have a minimum of three directors. While the maximum number of directors is generally capped at 15, this limit can be increased by passing a special resolution.
Yes, foreign individuals or entities can act as directors or shareholders, provided all applicable legal and regulatory conditions are fulfilled.
Some of the key compliance duties include:
- Filing annual financial statements and returns
- Conducting Annual General Meetings (AGMs)
- Maintaining statutory registers and company records
- Adhering to taxation laws and regulatory filings
- Publicly disclosing financial and operational information etc.
Listing offers several advantages:
- Greater public exposure and investor confidence
- Access to a wider pool of capital
- Enhanced brand image and trustworthiness
- Easier transferability and liquidity of shares