Closing Public Limited Company in India

A Public Limited Company should be the preferred business choice in India if you plan to raise funds from the general public through Initial Public Offering ("IPO") because Public Limited Companies have been privileged under Securities Laws to access the capital market.

Why do businesses opt for the Public Limited Company Model?

Public Limited Companies in India are considered to have a more transparent business model than other business structures. It allows investors to transfer their ownership in the Company without the hassle of just selling the shares. Public Limited Companies in India are a destination point for Foreign Direct Investment ("FDI") because, under Foreign Exchange Laws, there are areas open for Public Limited Companies to attract foreign loans and equity participation.

What does the Public Limited Company model offer?

A Public Limited Company has the following features:

Flexible Structure: A Public Limited Company has the most flexible structure of all Company types. It allows a significant degree of separation between operations and ownership.

Stock Ownership: A Public Company can provide stock ownership or ESOPS to employees. Only Limited Companies are allowed to offer this feature of distributing their stocks among current and prospective employees.

Stock Exchange Listing: Only Public Limited Companies can list their shares on Indian Stock Exchanges such as National Stock Exchange (NSE), Bombay Stock Exchange (BSE), etc. Therefore, the general public can invest in the Company by purchasing its stocks.

Raising Funds through IPOs: Only Public Limited Companies can accept Deposits from the Public under the Companies Act, 2013. This way, the Company can raise more capital for its business operations and size expansion.

Winding Up Public Limited Company

A Public Limited Company, legally known as PLC, is a publicly held company. It is a limited company whose shares can be traded with the public. PLC can be listed or not listed on the stock exchanges. PLC requires a minimum of 3 Directors as a prerequisite.

A Public Limited Company may be closed voluntarily by the shareholders or compulsorily by the judiciary. Registrationwala provides thorough services during this difficult transition of closing a Public Limited Company in India.

Eligibility Criteria for Closing Public Limited Company in India

Voluntarily closing a Public Limited Company:

This is possible if,

• Creditors' Voluntary Liquidation – The Company and its shareholders chose to liquidate the Company because it can't pay debts
• Members' Voluntary Liquidation – There Company can pay its debts, but the members want to close it

Compulsory closing of Public Limited Company:

This happens in the following scenarios,

• This happens in the following scenarios,
• The Company is unable to pay its debts
• Tribunal orders the Company to be shut down or is of the opinion that the Company is equitable and must be shut down
• When the Company has not filed financial statements or annual returns in the preceding five consecutive years
• The Company has acted against the sovereignty and integrity of the state and India, friendly relations with foreign states, public order, decency or morality
• If the Company has been conducted in fraudulent manners or is guilty of fraud or misconduct

Documents Required for filing Closing Public Limited Company

The following documents are to be submitted to close a Public Limited Company.

• Application for Striking off of the Public Limited Person Company

The Company that wishes to close must file a closing application with the Registrar

• Board Resolution for Closure

The Public Limited Company must submit the resolution of closing approved by the board members

• Consent of all the Creditors

The Company or its representatives must arrange the consent from all its listed creditors for the closure of the public limited Company.

• Consent of Directors

A letter of consent from the Directors stating their opinion to close the Public Limited Company must be submitted.

• Director's Affidavit

The Company must instruct all its appointed directors to draft and prepare an affidavit for the closure of the PLC.

• Statement of Assets and Liabilities

A financial statement indicating the sold-off assets and cleared debts must be submitted.

Process for filing Closing Public Limited Company 

The dissolution of a Public Limited Company consists of three main stages:

• PLC's Dissolution Resolution

To dissolve a Company, at least 2/3rd of the shareholders must adopt the resolution. The management must submit an application to the Register of Companies along with the resolution of dissolution, the minutes of the general meeting

• Liquidation of the PLC

The dissolution resolution and application submission are followed by Liquidation, in a series of steps.

• Appointment of Liquidator

A liquidator's appointment is either a management member or a separate liquidator appointed by the judicial. The liquidator submits the application of dissolution to the Registrar.

• Issuing Liquidation Notice

Publication of a notice regarding the Liquidation of Public Limited Company is sent out, specifying the creditors.

• Annual Report Submission

Submit an annual report and opening balance sheet to the Registrar upon Liquidation.

• Filing a Bankruptcy Petition

If the assets of the Public Limited Company being liquidated are insufficient to satisfy all of the requirements of the creditors, the liquidators must file a bankruptcy petition. Suppose a creditor known to the public limited Company has not presented a demand and cannot be satisfied due to reasons independent of the public limited Company. In that case, the funds belonging to the creditor shall be deposited in escrow if possible.

• Prepare the Final Balance Sheet and distribute the remaining Assets

Preparation of the final balance sheets of Public Limited Company and distribution of remaining assets according to the plan prepared by the liquidators is the final step of Liquidation. The assets may be distributed after six months have passed since the dissolution of the Public Limited Company was entered into the Commercial Register and the liquidation notice published. After two months have passed since the shareholders were notified of the final balance sheet and asset distribution plan presentation.

• Deletion from Commercial Register

After the Public Limited Company has been liquidated as required, the company management board will have to submit an application to the Register to delete the Company from the Commercial Register. This can be done after a minimum of six months of the entry of the dissolution of the public limited Company into the Register and providing notification thereof along with a final balance sheet and asset distribution plan to the application for deletion from the Register.

• Company Activities during Liquidation

Liquidation of a Public Limited Company is a fairly time-consuming process that lasts at least six months. The activities of a dissolved Public Limited Company can be continued, or a merger, division or transformation of the Company may also be conducted. To do so, the liquidators must submit to the Commercial Register an application for continuing the Company's activities.

Our Assistance in filing the Closing Public Limited Company

We at Registrationwala provide end-to-end solutions for filing Closing Public Limited Companies. Our services include:

• Collection of information and starting the process
• Creating the first compliance draft
• Reviewing the draft and making changes if necessary
• Providing you with the confirmation receipt

Registrationwala.com is a leading legal consultancy firm providing comprehensive services relating to Closing Public Limited Companies.

Contact us now for dissolving a Public Limited Company in India.

FAQs

Q. What is the procedure for the dissolution of a Public Limited Company?

A. To know the procedure for the dissolution of a Public Limited Company, refer to the process section of this web page. We have briefed you on every aspect of the in India. To know more about the Public Limited Company closing procedure, connect with the Incorporation experts at Registrationwala. Our seasoned professionals will detail every aspect of the Public Limited Company closure procedure in India. Visit site:www.registrationwala.com to know more.

Q. Explain the winding up of a public limited company in India.

A. A Public Limited Company, legally known as PLC, is a publicly held company. It is a limited company whose shares can be traded with the public. PLC can be listed or not listed on the stock exchanges. PLC requires a minimum of 3 Directors as a prerequisite. A Public Limited Company may be closed voluntarily by the shareholders or compulsorily by the judiciary. Registrationwala provides thorough services during this difficult transition of closing a Public Limited Company in India. 

Q. Briefly explain the company closing procedure which is publicly limited?

A. To know the Company Closing Procedure of a PLC, refer to the process section of this web page. We have briefed you on every aspect of the in India. To know more about the Public Limited Company closing procedure, connect with the Incorporation experts at Registrationwala. Our seasoned professionals will detail every aspect of the Public Limited Company closure procedure in India. Visit site:www.registrationwala.com to know more.

Q. What are the required eligibilities for dissolving a Public Limited Company?

A. For Close Company Procedure:

Voluntarily closing a Public Limited Company:

• Creditors' Voluntary Liquidation – The Company and its shareholders chose to liquidate the Company because it can't pay debts
• Members' Voluntary Liquidation – There Company can pay its debts, but the members want to close it

Compulsory closing of Public Limited Company:

• The Company is unable to pay its debts
• Tribunal orders the Company to be shut down or is of the opinion that the Company is equitable and must be shut down
• When the Company has not filed financial statements or annual returns in the preceding five consecutive years

Q. How to close a Public Limited Company in India?

A. To learn about the Public Limited Company closure in India, refer to the process section of this web page. We have briefed you on every aspect of the in India. To know more about the Public Limited Company closing procedure, connect with the Incorporation experts at Registrationwala. Our seasoned professionals will detail every aspect of the Public Limited Company closure procedure in India. Visit site:www.registrationwala.com to know more.

Q. How to liquidate a public limited company in India?

A. Closing a Limited Company:

• PLC's Dissolution Resolution: To dissolve a Company, at least 2/3rd of the shareholders must adopt the resolution. The management must submit an application to the Register of Companies along with the resolution of dissolution, the minutes of the general meeting
• Liquidation of the PLC: In several steps, the dissolution resolution and application submission are followed by Liquidation.
• Appointment of Liquidator: A liquidator's appointment is either a management member or a separate liquidator appointed by the judicial. The liquidator submits the application of dissolution to the Registrar.
• Issuing Liquidation Notice: Publication of a notice regarding the Liquidation of Public Limited Company is sent out, specifying the creditors.

Q. What are the features of a Public Limited Company in India?

A. A Public Limited Company has the following features:

• Flexible Structure: A Public Limited Company has the most flexible structure of all Company types.
• Stock Ownership: A Public Company can provide stock ownership or ESOPS to employees.
• Stock Exchange Listing: Only Public Limited Companies can list their shares on Indian Stock Exchanges such as National Stock Exchange (NSE), Bombay Stock Exchange (BSE), etc.
• Raising Funds through IPOs: Only Public Limited Companies can accept Deposits from the Public under the Companies Act, 2013. 

Q. How do you close a Public Ltd Company in India?

A. To know the procedure for winding up a PLC public limited company, refer to the process section of this web page. We have briefed you on every aspect of the in India. To know more about the Public Limited Company closing procedure, connect with the Incorporation experts at Registrationwala. Our seasoned professionals will detail every aspect of the Public Limited Company closure procedure in India. Visit site:www.registrationwala.com to know more.

Q. How to wind up a public limited company in India?

A. To learn how to wind up a PLC in India, refer to the process section of this web page. We have briefed you on every aspect of the in India. To know more about the Public Limited Company closing procedure, connect with the Incorporation experts at Registrationwala. Our seasoned professionals will detail every aspect of the Public Limited Company closure procedure in India. Visit site:www.registrationwala.com to know more.

Q. What are some modes of winding up of a PLC Limited company in India?

A. To learn about the modes for winding up a PLC company in India, connect with the Incorporation experts at Registrationwala. Our seasoned professionals will detail every aspect of the Public Limited Company closure procedure in India. Visit site:www.registrationwala.com to know more.

Q. How to shut down a public limited company in India?

A. To know how to shut down a public limited company, refer to the process section of this web page. We have briefed you on every aspect of the in India. To know more about the Public Limited Company closing procedure, connect with the Incorporation experts at Registrationwala. Our seasoned professionals will detail every aspect of the Public Limited Company closure procedure in India. Visit site:www.registrationwala.com to know more.

Q. What is a Public Limited Company in India?

A. A Public Limited Company should be the preferred business choice in India if you plan to raise funds from the general public through Initial Public Offering ("IPO") because Public Limited Companies have been privileged under Securities Laws to access the capital market.

Q. What is the procedure for liquidation companies in India?

A. To know the procedure for the Liquidation of a company, refer to the process section of this web page. We have briefed you on every aspect of the in India. To know more about the Public Limited Company closing procedure, connect with the Incorporation experts at Registrationwala. Our seasoned professionals will detail every aspect of the Public Limited Company closure procedure in India. Visit site:www.registrationwala.com to know more.

Q. What are some of the reasons for winding up a Public Limited Company in India?

A. The following scenarios can be valid reasons for winding up a Company:

• The Company is unable to pay its debts
• Tribunal orders the Company to be shut down or is of the opinion that the Company is equitable and must be shut down
• When the Company has not filed financial statements or annual returns in the preceding five consecutive years
• The Company has acted against the sovereignty and integrity of the state and India, friendly relations with foreign states, public order, decency or morality
• If the Company has been conducted in fraudulent manners or is guilty of fraud or misconduct

Q. What is the procedure for the voluntary winding up of a Public Limited Company in India?

A. To know the procedure for voluntarily winding up a Public Company, refer to the process section of this web page. We have briefed you on every aspect of the in India. To know more about the Public Limited Company closing procedure, connect with the Incorporation experts at Registrationwala. Our seasoned professionals will detail every aspect of the Public Limited Company closure procedure in India. Visit site:www.registrationwala.com to know more.

Q. What is the procedure for closing a Public Limited Company with debts?

A. To close a PLC company with debts, refer to the process section of this web page. We have briefed you on every aspect of the in India. To know more about the Public Limited Company closing procedure, connect with the Incorporation experts at Registrationwala. Our seasoned professionals will detail every aspect and method of winding up a Public Limited Company in India. Visit site:www.registrationwala.com to know more.

Q. What is the voluntary Liquidation of a public limited company?

A. Voluntarily Liquidation of a Public Limited Company:

• Creditors' Voluntary Liquidation – The Company and its shareholders chose to liquidate the Company because it can't pay debts
• Members' Voluntary Liquidation – There Company can pay its debts, but the members want to close it

Q. What is a PLC business in India?

A. A Public Limited Company should be the preferred business choice in India if you plan to raise funds from the general public through Initial Public Offering ("IPO") because Public Limited Companies have been privileged under Securities Laws to access the capital market.

Q. Where can I get the list of liquidated companies in India?

A. You can get the requisite list from the official MCA portal.

Q. What is the winding-up process for a Public Limited Company in India?

A. To know about the winding-up process for a Public Limited Company in India, refer to the process section of this web page. We have briefed you on every aspect of the in India. To know more about the Public Limited Company closing procedure, connect with the Incorporation experts at Registrationwala. Our seasoned professionals will detail every aspect and method of winding up a Public Limited Company in India. Visit site:www.registrationwala.com to know more.

Q. Name three public limited companies in India?

A. Some of the examples of Public Limited Companies in India are as follows:

• Bharat Heavy Electricals Ltd
• Bharat Petroleum Corporation Ltd
• Coal India Ltd
• Hindustan Corporation Petroleum Ltd
• Indian Oil Corporation Ltd
• NTPC Ltd
• Oil and Natural Gas Corporation Ltd
• Punjab National Bank