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To start a Public Limited Company (PLC), you must register it under the Companies Act, ensuring a minimum of three directors and seven shareholders. Choose a unique name, draft the Memorandum and Articles of Association, and obtain a Certificate of Incorporation. Secure necessary tax registrations, business licenses, and, if required, list the company on a stock exchange through an IPO. Open a corporate bank account and comply with ongoing legal and financial regulations, including audits and annual filings.
A Public Limited Company (PLC) is a business entity that either trades its shares on the stock exchange or offers fixed deposits. It enjoys all the advantages of a private limited company, such as flexibility in accepting different types of shareholders, ease of share transfers, and a high level of transparency. For those looking to register a public limited company, seeking guidance from a professional registration advisor is highly recommended.
Unlike private companies, a Public Limited Company can raise significant capital by issuing shares, bonds, or fixed deposits. This allows the business to fund expansion, invest in research, and compete on a global scale. The ability to access public investment reduces dependency on bank loans and private funding.
Shareholders are only liable for the company’s debts up to the value of their shares. Personal assets—such as homes, vehicles, and personal savings—are generally protected from being used to settle business liabilities.Because shareholders’ personal liability is capped, more individuals are willing to start or invest in new businesses. This protection fuels innovation and economic growth by lowering the personal financial risk.Limited liability makes the company more attractive to outside investors. They can invest capital knowing their losses are restricted to what they put into the company, helping startups and growing businesses secure the funds they need.
A Public Limited Company must follow stringent regulations, including mandatory audits, financial disclosures, and corporate governance requirements. Regular reporting to regulatory authorities ensures transparency and builds investor trust. Failure to comply can result in heavy penalties and loss of market confidence.
A Public Limited Company is a widely preferred business structure in India due to its numerous benefits. Here’s an overview:
While a Public Limited Company offers several benefits, it also comes with certain challenges:
Identity Proof (Aadhaar / Voter ID card, Driving License) of all the designated Directors and Shareholders
Address-proof of the Directors and Shareholders
Directors’ and Shareholders’ PAN Card details
Residential proof of the registered Business Address (Telephone / Gas / Water / Electricity bill which should not be older than 2 months)
An NOC or No Objection Certificate from the owner of the business place
Company’s Memorandum of Association & Article of Association etc..
Here are 4 steps to complete your process
Obtain a Digital Signature Certificate (DSC)
Director Identification Number (DIN)
Name Reservation for the Company
Submission of Company Details
Preparation and Submission of Incorporation Forms
Every public limited company must adhere to compliance requirements at the end of each financial year. These obligations generally include auditing financial records, filing income tax returns, and submitting annual forms to the Ministry of Corporate Affairs (MCA). Failure to comply can result in significant penalties, late fees, or other legal consequences.
Form | Compliance Requirement | Due Date | Penalty |
---|---|---|---|
COB Filing | Certificate for Commencement of Business | Within 180 days of company incorporation | May lead to a strike-off by the registrar |
DIR-3 eKYC | Directors with a Director Identification Number (DIN) must complete KYC verification | On or before 30th September every year | Deactivation of DIN, ₹5,000 late fee, possible disqualification of directors |
Form ADT-1 | Auditor appointment | Within 15 days of auditor’s appointment | Late fees apply, ranging from 2 to 12 times the standard fee based on delay duration |
Form AOC-4 | Filing company financial statements | Within 30 days of the Annual General Meeting (AGM) | ₹100 per day after due date till the filings is done |
Form MGT-7 | Filing of annual returns | Within 60 days of the AGM | ₹100 per day after due date till the filings is done |
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