A public limited company, or 'PLC' for short, is a company that is legally allowed to offer its shares for sale to the public. They don't have to offer shares to the public if they choose not to, but the option is there if and when needed.

 

It is governed under the provisions of the Indian Companies Act, 2013. While there is no limit on the number of members, it is formed by the association of persons voluntarily with a minimum paid up capital of 5 lakh rupees.

 

 

 

 

 

 

PREREQUISITES FOR INCORPORATION

 

£ Minimum capital requirement for a public limited company is ₹5 Lakhs,

£ Minimum number of members or shareholders required is 7 (seven),

£ Must have minimum number of at least 3 directors – The Director needs to be over 18 years of age and must be a natural person. There are no limitations in terms of citizenship or residency.

 

LEGAL & ANNUAL COMPLIANCES

 

£ Company Name board outside office where business is being carried on, in legible letters,

£ Every Private Limited Company shall get its name, address of registered office, CIN, telephone and email printed on all business letters, billheads, letter papers,

£ Every company is required to ensure maintenance of its financials and circulate the same along with Director’s report and auditor’s report along with the Notice of their annual general meeting,

£ Company Name board outside office where business is being carried on, in legible letters,

£ Every Private Limited Company shall get its name, address of registered office, CIN, telephone and email printed on all business letters, billheads, letter papers,

£ Applying for PAN & TAN Number, and Director Identification Number,

£ Opening Bank Account in name of business,

£ MSME or Udyam/Udyog Aadhar Registration, not mandatory, but beneficial to be registered under the same,

£ Auditing of accounts of company & filing tax return for every financial year,

£ Obtaining other registrations such as EPF, ESI, Professional Tax etc.,

£ GST Registration if turnover exceeds ₹40/₹20 Lakhs,

£ GST Return if registered under GST,

£ Appointment of First Auditor of the Company.