Public Limited Company

Features of  Public Limited Company

1. Limited Liability
Shareholder liability for company losses is limited to their contributions only.

2. Perpetual Succession
The company’s existence is unaffected by changes in ownership.

3. Listing on Stock Exchange
Public companies can be listed on stock exchanges and raise funds through public issues.

4. Transferable Shares
Shares can be freely transferred between members and non-members.

5. Disclosure & Transparency
Public companies must adhere to stringent disclosure requirements; financials are publicly accessible.

6. Minimum Directors & Shareholders
A minimum of 3 directors and 7 shareholders is required, with no cap on the maximum number of shareholders.

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Why Choose a Public Limited Company?

1. Unlimited Members
There is no limit on the number of members in a public limited company.

2. Limited Liability
Directors’ liability is limited to their shareholdings, even with unlimited members.

3. More Transparency
Public limited companies operate with greater transparency, separating management from ownership.

4. Property Rights
The company can own property in its name, protecting it from individual shareholder claims.

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Public Limited Company Incorporation Process

1. Step 1: Upload required documents & information to our web portal.
2. Step 2: Choose a package and pay online using various payment modes.
3. Step 3: Apply for Digital Signature and Director Identification Number for proposed directors.
4. Step 4: Check company name availability and apply for name approval.
5. Step 5: Prepare the Memorandum of Association (MoA), Articles of Association (AoA), and other necessary documents.
6. Step 6: File incorporation documents and obtain the Certificate of Incorporation, PAN, and TAN.

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Advantages of Public Limited Company Registration in India

1. Easy Fundraising: Public limited companies can issue shares to the public, facilitating rapid expansion and growth.
2. Business Continuity: The company remains intact despite the death or departure of shareholders or directors.
3. Better Corporate Governance: Subject to strict regulations, ensuring accountability.
4. Transferability of Shares: Shares can be easily bought or sold on the stock exchange, enhancing liquidity for shareholders.
5. Tax Benefits: Public limited companies can avail various tax benefits, advantageous for both the company and its shareholders.

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Annual Compliance Requirements for Public Limited Companies

Listed Public Limited Companies

No.	Compliance	Details	Form	Section	Deadline
1	Annual General Meeting (AGM)	Conduct AGM in compliance with the Companies Act	MGT-15	Section 121(1) of the Companies Act, 2013	Within 30 days of incorporation
2	Financial Statements	Prepare and file financial statements, including balance sheet, etc.	AOC-4	Section 137 of the Companies Act	Within 30 days of AGM
3	Annual Return	File information about directors and shareholders	MGT-7	Section 92 of the Companies Act	Within 60 days of AGM
4	Financial & Directors Report	Adopt financial and directors reports	MGT-14	Section 173 along with Secretarial Standards 1	Within 30 days from board meeting
5	Income Tax Returns	File income tax returns with the Tax Department	ITR-6	—	On or before September 30th
6	Secretarial Audit Report	Submit report if paid-up capital >= Rs. 50 crore	MR-3	Section 204 of Companies Act	Before auditor appointment
7	SEBI Compliance	Comply with SEBI regulations, including Listing Regulations of 2015	—	Listing Regulations of 2015, SEBI	—

Unlisted Public Limited Companies

S.No	Compliance	Particulars of Compliance	Form No.	Section and Rules	Due Dates
1	Board Meeting	Conduct at least four meetings a year	N/A	Section 173 of the Companies Act	At least 4 meetings a year
2	Appointment of Cost Auditor	Issue letter of appointment and inform the government	CRA-2	Section 148(3) along with Rules	30 days of board meeting or 180 days of FY
3	Return of Deposits	File return of deposits with ROC	DPT-3	Rule 16 of Companies (Acceptance of Deposit) Rules, 2014	30th June every year
4	Appointment of CEO/CFO/CS	Appoint and file necessary forms	MGT-14, DIR-12	Section 203 and Rules	30 days of AGM or within 6 months for casual vacancy
5	Annual General Meeting	Conduct AGM for declaration of dividends	N/A	Section 96 of the Companies Act	Within 9 months of financial year end
6	Special Resolution	File special resolution passed at AGM	N/A	Section 117 of the Companies Act	Within 30 days of passing resolution
7	CSR Committee	Hold meetings and approve CSR activities	N/A	Section 135 of Companies Act	At least 4 board meetings per year
8	Director’s Disclosure	Directors disclose financial interests	MBP-1	Section 184(1) of Companies Act	After appointment in first meeting

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Difference Between Public Limited Company and Private Limited Company

S.No	Feature	Private Limited Company	Public Limited Company
1	Share Trading	Shares cannot be traded on the stock exchange	Shares can be traded on the stock market
2	Maximum Shareholders	Maximum of 200 shareholders	No limit on the number of shareholders
3	Minimum Shareholders	Minimum of 2 shareholders	Minimum of 7 shareholders
4	Legal Requirements	Fewer legal requirements	More legal requirements
5	Minimum Share Capital	Minimum share capital of Rs. 1 Lakh	Minimum share capital of Rs. 5 Lakh