Public Limited Company Registration

Public Limited Company Registration

Establishing a Public Limited Company in India is highly advantageous for business owners who have ambitious plans for large-scale operations. Unlike other types of companies, there is no maximum limit on the number of shareholders or members that can form a Public Limited Company in India. However, it is mandatory to have a minimum of seven members. By registering as a Public Limited Company, business owners can enjoy the privileges and protections of a corporate entity, including limited liability.

Moreover, Public Limited Companies have the option to raise funds from the general public by listing their shares on the stock exchange. Nevertheless, it is crucial for Public Limited Companies to comply with various government regulations in order to operate legally and smoothly.

What documents are necessary for a Public Limited Company?

1. Identification proof is required from all directors and stockholders.
2. Proof of residence is needed for each shareholder and director.
3. PAN numbers are required for all shareholders and directors.
4. The utility bill for the proposed office will serve as the Company’s registered office.
5. A NOC (No Objection Certificate) signed by the landlord of the office space is necessary.
6. Each director must provide their Director Identification Number (DIN).
7. Directors must possess a Digital Signature Certificate (DSC).
8. Both the Association Memorandum (MOA) and Articles of Association (AOA) must be provided.

Requirements for Public Limited Company

When registering a Public Limited Company in India, it is important to meet certain requirements. This checklist provides guidance throughout the process:

1. A minimum of 7 shareholders is necessary.
2. At least 3 Directors must be appointed.
3. A minimum share capital of Rs.5 lakh is required.
4. One of the Directors must have a Digital Signature Certificate (DSC) for submitting self-attested identity copies and address proof.
5. Directors must obtain a Director Identification Number (DIN).
6. An application must be made to select the Company’s name.
7. The application should include the main object clause, which outlines the Company’s objectives.
8. Submit the application to the Registrar of Companies (ROC) with necessary documents such as MOA, AOA, Form DIR-12, Form INC 7, and Form INC 22.
9. Pay the registration fees as prescribed by the ROC.
10. Once ROC approves, the Company can proceed to apply for a business commencement certificate.

What advantages come with the registration of a Public Limited Company?

• Self-contained Legal Entity: A public limited company is a separate legal entity from its shareholders and maintains perpetual existence.
• Room for advancement: The organization’s large capital base translates into vast development opportunities.
• Shares are transferable with ease: The major benefit is the seamless transferability of shares within India or abroad.
• Diverse funding channels: Public limited companies can raise funds from individuals or financial institutions.
• Supervision: A Board of Directors manages the organization.
• Protected Liability: Shareholders enjoy limited liability protection against unforeseen company obligations.

The process of acquiring registration for a Public Limited Company

1. Step 1: Fulfill all legal requirements – including required directors, shareholders, and minimum paid-up share capital.
2. Step 2: Obtain DSC and DIN – only natural persons can be directors.
3. Step 3: Register a proper office address with the Registrar of Companies (ROC).
4. Step 4: Name approval – proposed name must undergo approval from ROC using RUN form.
5. Step 5: Execute essential documents like MOA and AOA once name approval is received.
6. Step 6: Submit prepared documents to ROC for verification.
7. Step 7: ROC registers and issues the incorporation license with Company’s CIN.
8. Step 8: Obtain the Certificate of Incorporation (COI) and certificate of commencement within 180 days.