A Public Limited Company, or PLC, is a business entity that gives shares to the public. It also trades its securities in the stock market. This kind of company structure can amass much capital via the public issue of their shares. If you desire to commence a Public Limited Company, you should have detailed knowledge regarding the setting up process. Thankfully, you can use a Business Registration Service online and complete the registration process for as little as $568.
In this article, you will gain comprehensive knowledge about the characteristics of this business structure and the advantages that accrue to it.
Significant Traits of a Public Limited Company
Some of the fundamental characteristics of this type of company include:
- All shareholders or members of this company structure bear a limited liability. It means that if the company experiences losses in any situation, all its shareholders have to pay the debts. They will have to pay it according to their share’s nominal value.
- A minimum of seven members is needed for establishing a Public Limited Company. But there is no cap on the maximum limit of the members.
- With regards to the company name, it is essential to add ‘Ltd’ to it.
- PLCs are separate legal entities. That means they keep existing according to law irrespective of bankruptcy, death, insanity, or insolvency of the company members. It is called perpetual succession, and it is a hallmark of a PLC.
Benefits of Public Limited Company
There are numerous advantages of starting and running a Public Limited Company. They include the following.
- For a Public Limited Company, raising capital is relatively easy. It is why many individuals structure their business in this way. The company, through issuing public shares, can quickly raise money. This kind of company lists their stocks on a public exchange, and investors can buy them and become equity owners. They are then called shareholders. Also, a Public Limited Company can have any number of shareholders. It, in turn, boosts their capacity to raise capital.
- Since a Public Limited Company can raise stocks quickly, it possesses unlimited possibilities for its growth. Growth can happen by undertaking new projects, research, and company developments. The company can also get involved in acquisitions and reduce debt risk.
- A Public Limited Company’s shares can be easily transferred. It also has the benefit of acquiring more shareholders as its stock is listed on the Stock Exchange.
What are the Post Compliance Obligations for Company Registration?
- The meeting of shareholders must take place within 18 months of incorporation. Resolutions for any matter require a 75 per cent vote.
- A yearly meeting of the board of directors should be carried out.
- There should be the filing of Federal Tax each year.
- Corporate tax is levied between 25 to 30 per cent.
- The balance sheet, financial statements, and annual returns must be filed with the Australian Securities and Investment Commission or ASIC.
- For branch and representative office, every document needed to be lodged according to the country of origin should be submitted.
Documents Needed for Company Registration
The following list of documents is required at the time of registering the company.
- Application form (Form201)
- Articles of Association and Memorandum of Association
- Constitution of company
- Name reservation
- Information on directors and shareholders
- Registered office address information
- Form 410 for name reservation
A Public Limited Company sure has quite many advantages. If you desire to set up and register this kind of business structure quickly and easily, avail of a Business Registration Serviceportal. There’s no paperwork needed, and you benefit from instant registration and real-time name search.