What is Public Limited Company
Public Limited Company refers to the company whose securities are traded on a stock exchange and can be bought and sold by anyone. It is strictly regulated and required by law to publish their complete and true financial position so that investors can determine the true worth of its stock (shares). It is also known as the publicly held company. The abbreviation of Plc is commonly used in the UK in the way that corporation and INC are used in the United States. In this article, we will focus on the Public Limited Company registration procedure.
Public Limited Company Registration Procedure
There are several steps involved in the incorporation of a Public limited company which is given below:
- Digital Signature Certificate: The first and foremost step for Company incorporation is to get the digital signature certificate. It is the digital signature of the director of the company. It can be availed from any of the government approved vendors such as TCS, E-Mudra etc. DSC is very important as all the documents which will be uploaded to the Ministry of Corporate Affairs(MCA) website are uploaded electronically and this kind of form needs a digital signature.
- Director Identification Number: Director Identification Number is a unique identification number which is alloted to the director. All types of director proposed to be appointed in the company should hold a DIN.
- Getting name approval: Once you are ready and decided to carry on the process of Company registration, it is important to get the name of your entity approved by MCA. Then you have the leverage six different options for the name of the company. But make sure that you stick to the name guidelines suggested by MCA.
This approval is provided subject to the following certain conditions:
- You have to make sure that there should be no other company registered with the name as your company.
- The last word of your public limited company should contain ‘Limited’ mentioned at the end of the name of the company.
- As soon as you are done with the application for the name, the registrar of companies (ROC) informs the applicants of the status of their name approval.
4. Filing of Incorporation Documents: When the name of your company is accepted by the ROC you need to file Memorandum of Association (MOA), Article of Association (AoA) and some declaration and affidavits to proceed with company incorporation. There is a limited time period for 60 days from the date of filing the application for the name approval. If the failure happens to submit the incorporation documents, the name will expire after the said 60 days.
5. An issue of Certificate of Incorporation: As soon as ROC issues a certificate of incorporation then only after it receives all the documents supported with proof and registration fees. It will depend on the share capital of the company that is already mentioned in a Memorandum of Association. The fee can vary from state to state due to a different rate of stamp duty.
The public limited company is allowed to issue subscription to the public, the details of which should be mentioned in the prospectus. In this case, it is mandatory to submit the prospectus with the ROC. If the company does not approach the public for the required capital and obtains it privately then “Statement in Lieu of Prospectus” should be filed with ROC.
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