According to the Company Act 2013, a Public Limited Company refers to the company which can offer shares to the public and has defined liability.
A public limited company can offer its shares to the public either via (IPO) initial public offering or trading platform like the stock market. Everyone is allowed to acquire the shares offered by PLC.
A Public Limited Company rigidly adheres to the regulations and reveals its accurate financial status to its shareholders.
A public company is suitable for medium and large-sized businesses that want to raise equity capital from the public. Due to its various advantages, the public limited company is one of the most popular legal entities among medium and large-size companies in India.
To understand the concept of PLC better, let us check its characteristics which are as follows:
Under Companies Act, 2013 provisions, a public limited company must have at least 3 directors.
No minimum capital is required to form a Public Limited Company
Under the Companies Act, 2013, a public limited company must issue a prospectus that showcases the company’s business affairs, to the public.
As per Companies Act, 2013, it is mandatory for all the public companies to end their name with the word “Limited”.
Public Limited Company limits the liability of each shareholder by making the owners jointly & severally liable for the business’s debts.
Let us have a look at the benefits of establishing a public limited company:
Companies Act, 2013 has listed the following requirements for the incorporation of a Public Limited company
Minimum 3 Directors and 7 Members are required to incorporate Public Limited Company.
Self-attested PAN Card of Members and Directors.
Self-attested ID proof of Members and Directors- (Anyone out of the following -Valid Passport/Voter ID/Aadhar Card/Valid Driving License)
Self attested Address proof of the Members and Directors (Any one out of the following – Bank Statement/ Electricity Bill/ Telephone Bill/ Mobile Bill which and it should be not older than 2 months
2-2 Passport Size Colored Photos of Members and Directors.
NOC from the Owner of Property/Property Papers (Title Deed)/Utility Bill (Either Electricity Bill or Mobile Bill or Telephone Bill) (Should Not be Older than 2 Months)
Contact us today to explore how we can support you in fulfilling your taxation requirements.
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