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Public Limited Company Registration

A public limited company delights the benefits of limited liabilities for its shareholders and provides all the right to sell their shares for raising the funds. Any interested investors can fund in the shares of a public limited company.

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Overview
Advantages
Required Documents
Registration Process
FAQ

Overview of Public Limited Company Registration

A public limited liability company allows limited liability to its proprietors and to its management team. But in the case of a public limited company, a firm can sell shares to investors which are considered as a beneficial act in raising the capital for the business. To establish a Public Limited Company, a minimum of three Directors are required and there is no cap on the maximum number of members. Importantly, it has more strict regulatory requirements when compared to a Private Limited Company.

Public Limited Company is a different type of company but holds most of the characteristics of a private limited company. It enjoys more benefits such as ease of transferability, borrowing capacity, limited liability, and perpetual existence. Like any other companies in India, Public Limited liability is also registered according to the rules and regulations of the Companies Act, 2013.

A Public Company appreciates the benefits of constrained liabilities for its individuals and has rights to offer its offers for raising the capital of the company. It can be joined with a least number of three chiefs and has more rigid rules and directions as compared to a Pvt. Ltd. Company. It must have a least number of seven individuals while there’s no constrain for the greatest number of individuals. It gives all the benefits of a private restricted company in conjunction with more straightforwardness and simple transferability of possession and shareholding. Title, offers, arrangement, number of individuals, administration and chiefs, etc separates any Open restricted company from the private restricted companies.

Advantages of Public Limited Company

Business Type For Investors

Investors and other parties prefer Public Limited companies to invest their money as it is well structured and also transparent business structure. If anyone wants to raise capital for your business and to sell the ownership in the business, this type of company is what they should consider.

Most Suitable Business For Heavy Investment

Public ltd is company is the best business structure for heavy investment.

Easy To Raise Funds And Loans

Public Limited Company is like a person as it can list itself in various stock exchange markets in India and can raise capital from the stock market and from interested investors. It also enjoys wide options to raise minimum paid up capital for public company, bank loans and Institutional investors.

Uninterrupted Existence

A Public Limited Company has ‘perpetual succession’, which means it has uninterrupted existence until it gets legally dissolved. Being a separate legal person, a company is unaffected by the departure or death of any member, it continues to be in existence regardless of the changes in the membership of the company.

Easy Transfer Of Shares

Importantly, it is very easy to way out from a public company limited by guarantee, as only shares of the company have to be handed over to the investor or purchaser along with share transfer forms.

Owning Property

A Public Limited Company is a juristic person; it can own, acquire, enjoy and estrange, properties in its own name. There is no right to the shareholder to make any claim upon the property which is in the name of the company so long as the public limited company is a going concern.

Checklist for registering a Public Limited Company in India

As per Company Act, 2013 any public limited company ownership to be registered in India must meet the conditions mentioned below.

  • To form a public limited company a minimum of seven members is needed.
  • There is no self-command on a maximum number of members.
  • At least one of the directors must be an Indian Territory Resident.
  • A minimum paid-up capital of around Rs 5 lakhs is required.
  • The shares assigned to the members are munificently transferable.
  • Public Limited Companies can raise funds or investments from the general public through open requests and invitations by selling the company’s shares and accepting funds or fixed deposits.
  • The name of the public limited company should not bear any similarity or should not match to any name of the company or trademark that already exists. The company name should be unique anyways.
  • These types of companies are required to keep either public limited' or private limited' after their company names.
What is the difference between the Private Limited Company and Public limited Company?

There are various points of differences between both these companies. Here are some chief differences between both:

Private Limited Company
  • Members: Minimum: 2 Maximum: 200
  • Directors: Minimum: 2
  • Public Invitations: No
  • Minimum Capital Income: No
  • Issuance Of Prospectus: Not Required
  • Name Differences: Must have PVT LTD at the end of its name
  • Mandatory Statutory Meeting: No
  • Managerial Remunerations: Cannot exceed the limit of 11/% of the net profit
  • Stock Exchange: Not listed on stock exchange neither carry out stock trade publicly.
Public Limited Company
  • Members: Minimum: 7 Maximum: No Limit
  • Directors: Minimum: 3
  • Public Invitations: Yes
  • Minimum Capital Income: No
  • Issuance Of Prospectus: Required
  • Name Differences: Must have “Limited” at the end of its name
  • Mandatory Statutory Meeting: Yes
  • Managerial Remunerations: There are no as such restrictions
  • Stock Exchange: Is listed on stock exchange and stock trade is carried out publicly.

Documents Required

  • PAN Card
  • Foreign Nationals nationality proof.
  • Passport for Foreign Nationals
  • Identity proof such as Passport, Driving License, Voter ID and so on,
  • Latest Utility bills
  • NOC provided by Landlord
  • DSC
  • Directors and Shareholders Address proof
  • 2 Passport size photos
  • The applicant can provide the electricity bill or phone bill or electricity bill or bank statement and importantly, none of the above mentioned documents should be older than two months.
  • Rent Agreement or Conveyance attached with rent receipts.

Note: Documents linked with Foreign Director are as follows:

  • Notarized (if the company director has a nationality of any commonwealth countries)
  • Notarized & Apostilled (if the director residing in a country signer to Hague convention)
  • Notarized & Consularised (If the director not represent the above mentioned categories)
Public Limited Company Registration Procedure

Applying for Company Name reservation

Applying for Digital Signature Certificate (DSC) of the Director

Obtaining Director Identification Number (DIN)

Getting approval of other authorities

Submitting the needed documents to Registrar of Companies (ROC)

Drafting of MoA, AoA & other required documents and Filing of the EMoa and EAOA to register a public limited company

Minimum Seven Directors are required for incorporation of a public limited company.

Applying for PAN & TAN of the company simultaneously along with company registration forms

Receiving the Certificate of Incorporation of public limited company. After receiving the certificate of Incorporation the public limited company is set to start its function.

Opening of Bank Account in the name of company, required for smooth functioning of the company.

Frequently Asked Questions

The DSC is nothing but a Digital Signature Certificate issued by certifying authorities (TCS and n-Code) using that certificate you can sign electronic documents. As, all the documents need a DSC to start up a Private Limited company in India.

The first and the foremost step in obtaining Public Limited Company Registration is to reserve and get approved the name of the company. The proposed or reserved name should not hold any word which is prohibited as per Companies Act, 2013.

DIN is a short form of Director Identification Number and it is issued by Registration of the Companies ROC which permits the director to work in the company.

Yes, I can. It is a very easy process, that too if the new address is inside the same city the process of changing the address can be made within hours.

Generally, it takes 8-15 Working Days in the registration process of a company, moreover it is a legal process and fixing a timeline is not practical, Start-ups are advised to plan the registration process in advance before the launch date of their company.

A public limited company needed a minimum capital of Rs. 5, 00,000. This amount is required to deposit by the director or shareholder in the determined share percentage in the bank account of the public Limited Company. Then the same deposit amount can be utilized by the company for its further operations.

The registration of the Public Limited Company is valid throughout the life of the company.

MOA is a short form of Memorandum of Association and it defines the business object, mission and vision of the company before its incorporation while AOA is a short form of Article of Association. It represents the internal constitution of the company.

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