A public limited company, commonly known as a PLC, is a business entity whose shares are publicly traded on a stock exchange. This means that anyone, including individual investors and institutional investors, can buy and sell shares of the company on the open market. One of the defining characteristics of a public limited company is that it must issue a prospectus before offering shares to the public, providing potential investors with detailed information about the company’s financial performance, operations, and future prospects. Additionally, public limited companies are subject to stringent regulatory requirements and must comply with rules and regulations set forth by government authorities and stock exchanges. This includes regular financial reporting and disclosure obligations to ensure transparency and accountability to shareholders and the public. While public limited companies have access to a larger pool of capital from investors, they also face greater scrutiny and oversight compared to private companies. Overall, the public limited company structure offers businesses the opportunity to raise funds from the public markets while providing investors with the ability to invest in diverse portfolios and participate in the company’s growth and success.
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Directors need a DSC containing vital information like name and address.
Obtain DIN through SPICe+ for up to three directors.
For additional directors without DIN, file Form DIR-3.
Reserve company name and provide details including type, category, etc.
Submit Part-A and choose to apply for name reservation separately if required.
Submit proof of identification and address for directors and shareholders.
Provide proof of registered office of the company.
Fill in details of company’s capital structure, registered office, subscribers, etc.
Attach required documents.
Submit Part-B of SPICe+ form.
Fill in details in e-form SPICE-AOA.
Submit necessary forms related to interpretation, share capital, board of directors, etc.
A public limited company offers shares to the general public and has limited liability. Its stock can be acquired by anyone, either privately through Initial Public Offering (IPO) or via trades on the stock market. It is strictly regulated and is required to publish its true financial health to its shareholders.
Public limited companies are broadly categorised into two distinct types: A listed public limited company has shares traded on stock exchanges, providing liquidity and broad investor exposure. An unlisted public limited company does not trade on exchanges, making its shares less transferable and subject to fewer regulations, which suits businesses seeking a wider shareholder base without the complexities of public trading.
An IPO is the first sale of a company’s shares to the public, allowing it to raise capital and list on the stock exchange
A public limited company must hold an Annual General Meeting (AGM) every year.
To start a public limited company, a minimum of 3 directors are required and there can be a maximum of 15 directors.