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    Meaning of Public Limited Company

    A Public Limited Company (PLC) is a type of business entity defined under the Companies Act, 2013, that allows its shares to be offered to the public. The company is required to disclose its financial status and operations to shareholders and follow stringent regulations. PLCs can raise capital by issuing shares to the public through the stock market or an Initial Public Offering (IPO).

    Key Features of a Public Limited Company

    1. Directors: A minimum of three directors is required to form a public limited company.
    2. Paid-up Capital: No minimum capital requirement to establish a PLC.
    3. Prospectus: A PLC must issue a prospectus that provides detailed information about its business to the public.
    4. Company Name: The company name must end with the word “Limited”.
    5. Limited Liability: Shareholders’ liability is limited to the amount unpaid on their shares.

    Benefits of Public Limited Company

    1. Additional Capital: PLCs can raise capital by offering shares to the public, making it easier to fund business growth.
    2. Increased Popularity: Being listed on stock exchanges increases the company’s visibility and business opportunities.
    3. Divided Risk: The financial risk is distributed among a large number of shareholders.
    4. Expansion and Growth: With additional capital and reduced risk, PLCs have more opportunities for business expansion.
    5. Share Transferability: Shares in a public limited company can be easily bought and sold, providing liquidity for shareholders.

    Documents Required for Public Limited Company Registration

    • Directors and Shareholders’ Documents:
      • PAN Card (Self-attested) of Directors and Members.
      • Identity Proof (Passport/Voter ID/Aadhar Card/Driving License).
      • Address Proof (Bank Statement/Utility Bill, not older than 2 months).
      • Passport-sized photos of Directors and Members.
    • Business Address Proof:
      • If the office is rented: NOC from the property owner, Lease Agreement, and utility bill.
      • If the office is owned: Property Papers (Title Deed), Utility Bill, and NOC from the owner.
    • Information Required:
      • Authorized and Paid-up Share Capital details.
      • Place of birth and residential address duration of Directors.
      • Business objectives and details of Directors’ qualifications.

    Knowledge Base

    A public limited company requires at least 7 shareholders.

    No, there is no minimum capital required to form a public limited company.

    The liability of shareholders is limited to the unpaid amount of their shares.

    Yes, a PLC can raise capital by offering shares to the public via an IPO or by listing on a stock exchange.

    A PLC must comply with disclosure and transparency requirements, hold annual general meetings (AGMs), and file annual returns with the Ministry of Corporate Affairs.

    • A PLC can be dissolved, but it requires a formal process including board meetings, shareholder approval, and clearance from relevant authorities.
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