A Public Limited Company (PLC) is a type of company in India that allows shareholders to own shares publicly and, in many cases, raise capital from the public through stock markets. It is governed by the Companies Act, 2013, and is ideal for businesses aiming for significant growth and expansion, as it enables access to large amounts of capital. A PLC can attract investment, bring in shareholders, and offer them limited liability, making it one of the most popular choices for medium to large enterprises.
Key Features of a Public Limited Company:
1. Separate Legal Entity: A PLC is considered a separate legal entity, which means it can own property, incur debt, enter contracts, and sue or be sued independently of its shareholders.
2. Limited Liability: The liability of shareholders in a PLC is limited to the amount of shares they hold, so personal assets are typically protected from business debts and liabilities.
3. Capital Raising: One of the major advantages of a PLC is its ability to raise funds from the public by issuing shares. This provides substantial capital access, which is ideal for expansion and business development.
4. Transparency and Compliance: Public Limited Companies are required to comply with strict regulatory standards set by the Securities and Exchange Board of India (SEBI), enhancing transparency and credibility with investors and stakeholders.
5. Shareholder Rights and Transferability: Shareholders have ownership in the company and the right to vote on important company matters. Shares of a PLC are easily transferable, allowing shareholders to buy and sell shares freely.
6. Minimum Requirements: A PLC must have at least three directors, seven shareholders, and a minimum capital as prescribed by the law to start. It is also required to publish financials and conduct annual meetings.
Why Register a Public Limited Company with Ractax?
Ractax provides end-to-end assistance in registering a Public Limited Company, ensuring compliance with all legal requirements and a streamlined process. Ractax’s team of experts assists with the preparation of necessary documents, filing with the Registrar of Companies, and meeting regulatory requirements, including SEBI compliances if the company plans to go public. Ractax’s services also cover tax planning and strategic advice, helping clients establish a strong foundation for attracting investors and achieving sustainable growth.