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Public Limited Company

In Just 15 days . From Any where in India. In just 3 Simple Steps

Overview of Public Limited Company Registration

Public limited companies enjoy all the rights of a corporate entity with limited liabilities and it is an ideal choice for the small and medium scale enterprises who wish to raise the equity capital from the general public.

Basic Clarification on Incorporation of Public Limited Company

Just like other companies, Public Limited Company is also registered as per the rules and regulations of the Companies Act, 2013. A public Company enjoys the benefits of limited liabilities for its members and has rights to sell its shares for raising the capital of the company. It can be incorporated with a minimum number of three directors and has more stringent rules and regulations as compared to a Pvt. Ltd. Company.

It must have a minimum number of seven members whereas there is no limit for the maximum number of members. It provides all the benefits of a private limited company along with more transparency and easy transferability of ownership and shareholding. Name, shares, formation, number of members, management and directors, etc differentiates any Public limited company from the private limited companies.

Benefits of Public Limited Company Registration

Here are the benefits provided to the company with Public Limited company registration

Limited liabilities for the shareholders of the company

  1. Shareholders of the public company enjoy the benefits of limited liabilities under which their assets are safe and cannot be used to clear the debts and losses of the company. Despite of it, the shareholders are responsible for their own legal offenses. All the members, directors and shareholders enjoy this right and their assets cannot be seized by any bank, creditors or government bodies.

Perpetual Succession

  1. A public limited company is considered as a corporate body that has perpetual succession. Means in case of death, retirement, insanity, and insolvency of one or more members/ shareholder/ directors, the company still continue its existence.

Improved capital of the company

  1. In a public limited company, the general public is invited to buy the shares of the company. Hence, anyone can invest in a public company that improves the capital of the proposed company.

Borrowing Capacity

  1. A public company can enjoy unlimited sources for borrowing funds. It can issue equity, debentures and can accept the deposits from the general public by selling its shares. Moreover, most of the financial institutions find public companies more prominent than other unregistered companies.

Fewer risks

  1. Since public companies can sell their shares to the public, it lesser the scope of unsystematic risks of the market.

Better opportunities for growth and expansion of the company:

  1. Fewer risks lead to better opportunities so that the company can grow and expand by investing in new projects from the funds raised by selling its shares in the market.

Documents Required for Public Limited Company Registration

An applicant has to collect all these documents to file along with the incorporation application:

  1. Identity Proof such as Aadhar card, PAN card, Driving License, Voter Id of all the designated directors and shareholders. 
  2. Address Proof of all the proposed directors and shareholder of the company.
  3. PAN card details of all the directors and shareholders
  4. Utility bill such as telephone, gas, water or electricity bill of the registered office as a residential proof of the business place. It should not be older than 2 months. 
  5. An NOC or No Objection Certificate from the landlord of the business place. 
  6. DSC or Digital Signature Certificate of the designated directors
  7. Memorandum of Association (MOA) and Article of Association (AOA)

Features of Public Limited Company Registration

Here are some important features of Public Limited Company:

Number of Directors in the company

  1. As stated in the provisions of Companies Act, a public company must have a minimum number of 3 directors to incorporate a company whereas there is no restriction on the maximum number of directors.

Name of the Company

  1. All the Public limited companies must add “Limited” word at the end of their name. it is denoted as an identity of a public company.

Prospectus of the Company

  1. Prospectus of the company is mandatory for the public limited companies. It is issued by the proposed company for its general public. It is a note of comprehensive statements of works and affairs of the company. However private companies have no such compliances as they don’t have rights to invite the public for their shares.

Paid-up Capital

  1. As per the requirements of the act, no minimum capital required for the registration.

What is the difference between the Public limited Company and Private Limited Company?

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

Point of difference

Public Limited Company

Private Limited Company

Members

Minimum: 7

Maximum: No Limit

Minimum: 2

Maximum: 200

Directors

Minimum: 3

Minimum: 2

 

Public invitations

Yes

No

Minimum Capital Income

No

No

Issuance of Prospectus

Required

Not Required

Name differences

Must have “Limited” at the end of its name

Must have PVT LTD at the end of its name

Mandatory Statutory Meeting

Yes

No

Managerial Remunerations

There are no as such restrictions

Cannot exceed the limit of 11/% of the net profit

Stock Exchange

Is listed on stock exchange and stock trade is carried out publicly.

Not listed on stock exchange neither carry out stock trade publicly.

Public Limited Company Registration Procedure

Step 1: Apply for the Digital Signature Certificate

  1. First of all, you have to apply for the Digital Signature Certificate for all the proposed directors in the company. DSC is used to sign the e-forms and is an authentic and safe method to file all the documents on an electronic platform. It is a mandatory document.

A director can easily obtain DSC from the nearest Certifying Authorities or CAs with self-attested coppices of their identity proof. It takes around 1 -3 working days to obtain a DSC.

Step 2: Name Verification

  1. The third step involves name registration of the company. You can check the name availability through the MCA portal by following this step
  2. Visit the MCA Portal> select the MCA services> Click Check Company Name
  3. Note: The company name should not be taken or registered and should not be similar to a brand name.

Step 3: Filing Form SPICe+

  1. Once the company’s name has been approved you can now file the SPICe+ form to avail the company incorporation certificate. Along with it, you have to file all the required documents such as MOA (Memorandum of Association) and AOA (Article of Association). These two documents contain the details of the mission, objectives, aims, visions, business activities, responsibilities of all the directors and shareholders and definition of the proposed company.
  2. All the documents and applications are further verified by the higher authorities and it takes around 7 to 9 working days.

Step 4: Obtaining Certificate of Incorporation

  1. Once all the applications and document to have been received to the authorities and they have verified it, the company would receive the Certificate of Incorporation which will include CIN and date of incorporation.

Requirements for the Public Company Registration

According to the provisions of Companies Act, 2013 here are the requirements you need to fulfill to incorporate a Public company in India:

  1. The proposed company must have a minimum number of 7 shareholders
  2. The proposed company must have a minimum number of 3 directors
  3.  No minimum capital required
  4. At least one director should have a Digital Signature Certificate
  5. Memorandum of Association and Article of Association.
  6. After approval from Registrar of the Companies, the proposed public company has to apply for the “Certificate of Business Commencement.”

Steps for registration

Step 1

A small river named Duden flows by their place and supplies it with the necessary regelialia. It is a paradise

Step 1

A small river named Duden flows by their place and supplies it with the necessary regelialia. It is a paradise

Step 1

A small river named Duden flows by their place and supplies it with the necessary regelialia. It is a paradise
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Frequently Asked Questions

Answered by our experts

It is an integrated web form that offers ten services simultaneously. As a result, it streamlines the process of starting a business in India while also saving time and money. This form provides the ability to electronically incorporate any company under the MCA, including OPC, section 8 companies, private company registration, Nidhi Companies, etc.
While SPICe is an electronic form, SPICe+ is an integrated Web form that offers 10 services by three Central Government Ministries & Departments. The new SPICe+ form delivers even more services in a single form than the original SPICe form did.

A company that is limited by shares and does not have a limit on the maximum number of shareholders is known as a public limited company. Three Directors and a minimum of seven members are required for its formation. In accordance with the Companies Act of 2013, it must be filed with the state's Registrar of Companies. Such a business can offer shares to the public, take deposits from it, and transfer shares without limitation.

The Director must be a natural person who is at least 18 years old. Regarding citizenship or residency, there are no restrictions.2 As a result, Directors of an Indian Private Limited Corporation can even be foreign nationals.

Any amount of capital can be used to establish a limited company. However, the Authorized Capital Charge must be paid to the Government for the issuance of at least Rs. 5 lakh worth of shares at the incorporation of the Company. No documentation of capital invested during the incorporation process is necessary.

Three categories of public limited companies exists: A company that is limited by the shares A company that is limited by guarantee. Unlimited Company

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