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Public Limited Company Registration

Public Limited Company

A public limited company can be formed under the companies Act 2013. These companies are formed completely within the legal systems. The best feature of a public company is that the shareholders of the company can share their risk by selling shares to the public. There is no restriction of shares of these companies and there is no restriction on the maximum number of its members.

According to Section 2 (71) of the Companies Act 2013, a public limited company means a company which is not a private company.

  • A public limited company refers to a company whose shares can be freely bought and sold by members of the general public. In other words, a public Limited Company is a company with no restriction on the transfer of shares. There is no restriction on the maximum numbers of member.
  • The general idea of a Public Limited Company may be similar, differences are meaningful, and are at the core of international law disputes with regard to industry and trade.
  • This company can increase its capital by issuing more shares.

Know the basics

Characteristics of a Public Limited Company

Board of Directors

The Companies Act requires a public corporation to have at least three directors, but there is no maximum limit.

Company Name

All publicly traded firms must legally include “Limited” to their name. It’s a symbol used to identify a corporation that is open to the public.

Prospectus

Company prospectuses are required for all publicly traded corporations. It’s being distributed to the public at large by the planned corporation.

Paid-up Capital

A public limited company is required to have a minimum paid-up capital of Rs 5 lakh or such a higher amount as prescribed under the act.

Documents Required for Incorporating a Public Limited Company

  • Proof of identity of all the shareholders and directors.
  • Proof of address of all the directors and the shareholders.
  • Passport size photograph of directors
  • Utility bill of the proposed office i.e. 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.
  • Memorandum of Association (MOA).
  • Digital Signature Certificate (DSC) of the directors.

Process for Public Limited Company Registration

  • Step 1.Acquire DSC and DIN

    One of the first things that need to be done is to get a director’s DSC (Digital Signature Certificate). Digital and electronic signatures both require the same information. The certifying authority issues this necessary document.

  • Step 2.Submit Company Name

    The next thing to do is to see if the desired company name is available on the MCA (Ministry of Corporate Affairs) website. After going to the MCA portal, choosing the MCA services and looking for name availability is the next step. The proposed name, however, must not replicate an existing trademark or service mark.

  • Step 3.Filing SPICe Form

    When the name of the public limited company is approved by relevant authorities, then the applicant would go in for filing SPICe form for securing the certificate of Incorporation. When the SPICe form is filed by the applicant, the DIN number would also be allocated to the directors of the company.

  • Step 4.Certificate of incorporation

    Certificates of Incorporation, complete with the company’s CIN (Corporate Identification Number) and the incorporation date, are issued once an entity’s formation paperwork has been received, processed, and approved by the appropriate authorities.

  • Step 5.Obtaining firm PAN and TAN

    Once the company has its COI, the members and directors can apply to the MCA for a Permanent Account Number (PAN) and a Tax Deduction Account Number (TAN Registration) to be issued in the company’s name (Ministry of Corporate Affairs).

Advantages of Registering Public Limited Corporation

  • 1.Independent Legal Entity

    There is a clear separation of ownership and control in a public limited Enterprise. The public limited Enterprise can have a PAN, approvals, contracts, bank accounts, licenses, assets, and obligations.

  • 2.Multiple avenues of funding

    A public limited company raises funds from individuals as well as from financial institutions. The funds may be also raised in equity shareholding, preference shareholding, or debentures.

  • 3.Easy transferability of shares

    It is one of the biggest advantages of a Public Limited Company, the shares can be easily transferred by a shareholder to other legal entities- be it an individual or an organization in India or abroad. The director of the company can also be changed for ensuring the business perpetuity.

  • 4.Limited Liability

    The shareholders of a Public Limited Company are given limited liability protection. In a situation of unexpected liability, the same would be limited only to the company and the not affect the shareholders in any way.

  • 5.Growth opportunities

    As the organization has a vast capital base the development openings are likewise huge, particularly in the event of an open constrained organization.

Attractive Plans

BASIC
15999
  • 1 Name Approval
  • Incorporation Certificate
  • 3 DSC
  • 3 DIN
  • 5 Lakh Authorized Capital
  • MOA, AOA
  • Incorporation Fee
  • ESI, PF Registration
  • Incorporation KIT
STANDRED
29999
  • 1 Name Approval
  • Incorporation Certificate
  • 3 DSC, 3 DIN
  • 10 Lakh Authorised Capital
  • MOA, AOA
  • Incorporation Fee
  • Stamp Duty, PAN, TAN
  • GST Registration
  • Udyam Aadhar
  • ESI, PF Registration
  • Incorporation KIT
  • 6 Month GST Filings (GSTR-1 GST3B)
  • HR Toolkit
  • Website Design
PREMIUM
39999
  • 1 Name Approval
  • 7 DSC
  • 5 DIN
  • 15 Lakh Authorised Capital
  • MOA, AOA
  • Incorporation Fee
  • Stamp Duty, PAN, TAN
  • GST Registration
  • Udyam Aadhar
  • ESI, PF Registration
  • A Class Trademark Registration
  • Incorporation KIT
  • Commencement of Business Certificate
  • 12 Month GST Filings (GSTR-1 GST3B)
  • Website Design 15 Pages
  • HR Toolkit