Public Limited Company
A public limited company is needed to have minimum 3 members and 3 directors. The business of public limited company can not be started unless it obtains certificate of commencement of Business from the registrar of companies(SECP) Securities and Exchange Commission of Pakistan.
Documents required for Incorporation of a Public Limited Company
- Identity proof of all the shareholders and directors
- Address proof of all the directors and the shareholders
- PAN number of all the shareholders and directors
- Utility Bill of the proposed registered office for the company
- A NOC (No Objection Certificate) from the landlord where the office of the company will be situated
- Director Identification Number (DIN) of all the directors
- Digital Signature Certificate (DSC) of all the directors
- Memorandum of Association (MOA)
- Articles of association (AOA)
Process for Registration of a Public Limited Companies
- Select, in order of preference, as a minimum one suitable name up to a maximum of 6 names, indicative of the most objects of the business enterprise and ensure that the name does not resemble the name of any other already business enterprise and also does not violate the provisions of logos and names (Prevention of Improper Use Act, 1950) by using the services of checking name availability on the SECP portal SECP Name Search
- Apply to the concerned Registrar of Companies (ROC) to check the availability of name in e-Form 1A by logging in to the portal. A fee of Rs. 500/- needs to be paid alongside and therefore digital signature of the applicant proposing the company has to be attached in the form.
- After the name approval the applicant can apply for registration of the new company by submitting the required forms within 60 days of name approval.
- Arrange for the drafting of the MOA and AOA by the specialists, screening of the equivalent by ROC and printing and stepping of the equivalent with the appropriate stamp duty
- Get the Memorandum and the Articles signed by at least two subscribers in his/her own hand, his/her father’s name, occupation, address and the number of shares subscribed for and witnessed by at least one person.
- Ensure that the Memorandum and Article is dated on a date after the date of stamping.
- Login to the portal and fill the following forms and attach the mandatory documents listed in the e-Form
- Declaration of compliance – Form-1
- Notice of situation of registered office of the company – Form-18.
- Particulars of the Director’s, Manager or Secretary – Form-32.
- Submit the following e-Forms after attaching the digital signature, pay the requisite filling and registration fees and send the physical copy of Memorandum and Article of Association to the ROC.
- After processing of the format and Corporate Identity is completed obtain certificate of Incorporation from ROC.
PLCs can be listed or unlisted on a stock exchange. Like any other major entity, they are strictly regulated and are required to publish their true financial health so shareholders (and future stakeholders) can estimate up to the true worth of their stock. The life span of a PLC is not decided by the death of a shareholder.
Advantages of Public Limited Company
- Raising of sharecapital from existing and new investor
- Shareholders are able to buy and sell their shares as they are listed on stock exchange
- The value of the firm is shown by the market capitalization (based on the share price)
- we can easily make acquisitions by offering shares to the shareholder of the company.
- For making more prestigious profile of the company.
Public company performance is easily assessed by public company.