As per Companies Act, 2013 ('Act') regulates the establishment and working of a public limited company. A public limited company offers shares to the general public and has limited liability. It can be listed on the stock exchange or it can be privately owned.
Public companies are subject to increased financial regulation, disclosure and reporting requirements compared to private companies.
Public Limited Company
As per Companies Act, 2013 ('Act') regulates the establishment and working of a public limited company. A public limited company offers shares to the general public and has limited liability. It can be listed on the stock exchange or it can be privately owned.
Public companies are subject to increased financial regulation, disclosure and reporting requirements compared to private companies.
However, creating a public limited company is preferable because it offers the benefits of a private limited company with features like simple transferability and share of ownership, separate legal body, Limited Liability etc.
To be a Public Limited Company (PLC) in India, a company must meet the Following key criteria:
- Shareholders: Minimum of seven shareholders.
- Directors: At least three directors, with one being a resident of India.
- Company Secretary: Required if paid-up share capital is ₹5 crore or more.
- Public Offering: Must comply with Securities and Exchange Board of India (SEBI) regulations if listing shares publicly.
- Prospectus: Must issue a detailed prospectus for public offerings.
- Regulatory Compliance: Adhere to the Companies Act, 2013, and other regulations.
- Auditing: Annual accounts must be audited and filed with the Registrar of Companies (RoC).
- Public Disclosure: Annual returns and financial statements must be filed with the RoC and are accessible to the public.
These requirements ensure transparency, accountability, and regulatory compliance for public companies.
- Shareholders: Minimum of seven shareholders.
- Limited Liability: The liability of shareholders is limited to the amount unpaid on their shares.
- Separate Legal Entity: The Company has its own legal identity, separate from its shareholders.
- Share Transferability: Shares can be easily transferred, allowing for greater liquidity and capital raising.
- Increased Credibility: Often seen as more credible by investors, lenders, and the public.
- Limited Liability: The liability of shareholders is limited to the amount unpaid on their shares.
- Complete the application form for public limited company registration.
- Apply for DSC and DIN.
- Verify the company name.
- Submit the SPICe form for incorporation.
- Submit the required documents.
- Obtain the Certificate of Incorporation from the Registrar of Companies (ROC).
Director Identification Number (DIN)
- Photographs
- Identity Proof: PAN card (mandatory for Indian nationals)
- Address Proof: Passport, voter ID, driving license, or Aadhar card
Digital Signature Certificate (DSC)
Memorandum of Association (MOA)
Articles of Association (AOA)
Proof of Registered Office Address
- Utility bill (electricity, water, gas, or telephone) not older than 2 months
- Rental agreement, if applicable
- NOC from the owner of the premises
Identity and Address Proof of Subscribers and Directors
Additional Documents:
- Prospectus (in case of inviting public subscription)
- Statutory declaration in form INC-8 or INC-9
Additional Compliance and Requirements
- Minimum Directors and Shareholders: A Public Limited Company must have at least three directors and seven shareholders.
- Prospectus: Issuing a prospectus to the public is mandatory before raising funds.
- Statutory Meetings: Holding statutory meetings and maintaining transparency through public disclosures.
- Guidance on Legal Requirements: Ensuring compliance with all legal stipulations as per the Companies Act, 2013.
- Document Preparation: Assisting with the preparation and submission of necessary documents.
- DSC and DIN Application: Helping in obtaining Digital Signature Certificates and Director Identification Numbers.
- Name Approval: Assisting in the verification and approval of the company name.
- Form Submission: Handling the submission of the SPICe form and other required documents.
- Obtaining Certificate of Incorporation: Ensuring the successful registration of your company by obtaining the Certificate of Incorporation.
- Ongoing Compliance: Providing support for ongoing compliance requirements, including statutory meetings and public disclosures.
- Guidance on Legal Requirements: Ensuring compliance with all legal stipulations as per the Companies Act, 2013.
- Minimum of 7 shareholders.
- Minimum of 3 directors.
- Directors must have a Director Identification Number (DIN).
- A Digital Signature Certificate (DSC) is required for filing electronic documents.
The registration process typically takes around 15-20 working days, depending on the completeness of the documentation and the processing time by the Registrar of Companies (ROC).
Choosing a Public Limited Company is beneficial if you plan to raise capital from the public, enhance the company’s credibility, and enjoy the advantages of limited liability, share transferability, and a separate legal entity.
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- Warrantied Products: For products covered by a manufacturer’s warranty, please contact the manufacturer directly. Any refunds approved by SS Auditors will be processed within 3-5 business days.
- Cancellations: Cancellations will be considered only if the request is made immediately after placing the order. Cancellation requests may not be entertained if the orders have been communicated to vendors/merchants and the shipping process has started.
Legal Disclaimer
The explanations and information provided on this page are general and high-level guidelines on how to write your own Shipping Policy. This article should not be relied upon as legal advice or specific recommendations, as we cannot foresee the exact shipping policies you wish to establish between your business and your customers. We recommend seeking legal advice to assist you in understanding and creating your own Shipping Policy.
Shipping Policy - The Basics
A Shipping Policy is a legally binding document that establishes the legal relations between you and your customers. It provides a framework for outlining your obligations and addressing various potential issues that may arise, and what happens in each case.
A Shipping Policy is good practice and benefits both sides—you and your customers. Customers benefit from being informed about what to expect from your service, while you benefit because clear Shipping Policies can attract more customers by eliminating uncertainties about shipping timeframes or processes.