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Public Limited Company Registration
Public Limited Companies are those companies where minimum seven members are required and there is no limit for maximum number of members. A Public Limited company provides limited liability to its members and shareholders. Being a limited company, it allows a firm to sell its shares toinvestors for raising capital. A minimum of three Directors are required for establishing a Limited Company and it has more stringent regulatory provisions as compared to a Private Limited Company. Public Limited Companies are those types of companies where minimum number of members is seven and there is no cap on the maximum number of members. A Public Limited Company has most of the characteristics of a Private Limited Company. A Public Limited Company has all the advantages of Private Limited Company and the ability to have any number of members, ease in transfer of shareholding and more transparency. Identifying marks of a Public Limited Company are name, number of members, shares, formation, management, directors and meetings, etc.
There are numerous reasons why you should go for Public limited company registration. Let’s find out what they are:
- Simple Registration Process
Public Limited Company can be registered by at-least seven persons, by complying with the prescribed limited formalities of the Companies Act, 2013.
- Limited Liability
Limited liability is the greatest benefit of Public Limited Company. If any legal liability arises then neither it’s member nor its director’s personally affected; the Liability of the members is only for the unpaid amount on shares held by them and not more than that. Shareholders are not liable for the Company’s debts and liabilities.
- Separate Legal Entity
One of the best advantages of a Public Limited Company is that it is distinct from that of its members. A company is a separate entity having its own rights & Obligations.
- Perpetual Succession
A company with ‘perpetual succession’, has continued or uninterrupted existence until it is legally shut down. The Company, being a separate legal entity, is not affected by the death of any member but continues to be in existence.
- Funding Capacity
The best advantage of a Public Limited Company is to raise funding from the public as Public Limited Companies can list their shares on Stock Exchange and can also accept deposits from public at large.
- Owning Property
A company is a separate legal person, can purchase, own, enjoy and alienate or sale, property in its own name. No member or shareholder can make any claim upon the property of the company so long as the company is a going concern.
- Fewer Risks
Since public companies can sell their shares to the public, it somewhere reduces the scope of unsystematic risks of the market.
- Enhanced Opportunities for Expansion of the Company
Fewer risks lead to better opportunities for the company to grow and expand by investing in new projects from the funds raised by selling its shares in the market.
- Minimum three directors
- Minimum Seven shareholders
- Objects of the company must be clearly defined and must be legal
- The name of your business must be unique
- No minimum paid-up share capital is required
- The registered office of a company does not have to be a commercial space. Even a rented home can be the registered office, so long as a NOC is obtained from the landlord.
- DIN (Director Identification Number) for all the Directors.
- DSC (Digital Signature Certificate) for one of the Directors.
- Certification by a practicing professional like CA/CS/Lawyers.
Be ready with the following documents to quickly incorporate a Public Limited Company
- From Directors and Shareholders
- PAN Card
- Driving License or Passport or Election ID Card of directors
- Driving License or Passport or Election ID Card of shareholders
- Latest Bank Statement/Telephone or Mobile Bill
- Passport-sized photograph of all directors and shareholder
- For Proposed Registered Address (Residential/Commercial)
- Any Utility bills not older than 2 months
- Scan copy of Rent agreement with NOC from owner
Step 1: Apply for Digital Signature Certificate (DSC)
Since the process is completely online, hence all those authorised signatories/directors who needs to sign the online incorporation documents must apply for Digital Signature Certificate.
Step 2: Apply for Director Identification Number (DIN)
DIN can be applied along with the company registration application form i.e. SPICE -32. However, maximum 3 Directors can obtain DIN along with SPICE 32.
In case the subscriber is already holding a valid DIN, and the particular provided have been updated as on date of application and the declaration to this effect is given in the application, the proof of identity and residence need not be attached.
Step 3: Application for Name Availability (Form RUN)
For the name approval step, an application is filed in the prescribed Form RUN (Reserve Unique Name) with the Ministry of Corporate Affairs. Please note that a minimum of 2 names at the time of incorporation are proposed.
Step 4: Filling and submitting final incorporation documents
After name approval, one needs KYC and other prescribed documents of Directors & Shareholders. After submission of the SPICe form along with MOA, AOA and AGILE to MCA one will get Certificate of Incorporation along with PAN & TAN from the Department.
Step 5: Receiving Certificate of Incorporation and opening Bank Account
After approval of incorporation documents, you will receive your Certificate of Incorporation including your Company Identification Number (CIN). Post this you can open a bank account on the name of your company and can launch your business.
How can we help in getting registration?
01. What is a Public Limited Company?
Public Limited Companies are those companies where minimum seven members are required and there is no limit for maximum number of members. A limited company provides limited liability to its members and shareholders. Being a limited company, it allows a firm to sell its shares to investors for raising capital. A minimum of three Directors are required for establishing a Limited Company and it has more stringent regulatory provisions as compared to a Private Limited Company.
Public Limited Companies are those types of companies where a minimum number of members is seven and there is no cap on the maximum number of members. A public limited company has most of the characteristics of a private limited company. A Public Limited Company has all the advantages of Private Limited Company and the ability to have any number of members, ease in transfer of shareholding and more transparency. Identifying marks of a public limited company are name, number of members, shares, formation, management, directors, and meetings, etc.
02. How many shareholders are required to register a Public Limited Company?
Minimum of seven shareholders required to register a Public Limited Company and the number can extend maximum up to two hundred beyond which is not allowed.
03. How many directors are required in Public Limited Company?
Minimum of three directors are required to register a Public Limited company and the maximum number cannot exceed beyond fifteen.
04. How much money do I need to start a Public Limited Company?
In the case of Public Limited Company, No minimum capital required.
05. What are the Liabilities of Public Limited Company?
Apart from the regular compliances related to income tax, there are many periodic and annual compliances to be made by a public limited company with ROC/MCA, SEBI, RBI, etc. These regulatory liabilities are in addition to securing and promoting steadily the profits and welfare of all shareholders of the public limited company.
06. Can I Register a company at my residential address?
Yes, there is no need to have a commercial premise for registering a company in India.
07. Can a salaried/employed person become the director of the company?
Yes, there is no legal hurdle, however employment agreement may have some restriction, you are advised to refer to the same or speak to us for more clarity.
08. Can I change the address of the company after I take a commercial space?
Yes, it’s is a very easy process if the new address is within the same city, the change can be made within hours.
09. Can an NRI/Foreign National be a director in Public Limited Company? If Yes, then what are the conditions for the same?
Yes, an NRI or Foreign National can also be a shareholder or director in a public limited company of India. For becoming a director, besides being a major adult, such a person must possess the DIN issued by MCA.
10.What is the time duration for registering a Public Limited company by Registrationseva?
Registrationseva assures to form a Public Limited Company within 15 working days. The time took also depends on the relevant documents provided by the applicant and the speed of approvals from the government. To ensure speedy registration, kindly pick a unique name as the proposed Company name and also ensure that you have all the required documents prior to the starting of the registration process.
11.Why get my company registration through Registrationseva?
- We have an in-house expert team of lawyers/ Chartered accountant/ Company secretaries and experienced professionals from all over India.
- Our price is the most reasonable in India
- We focus on building a long-term relationship rather than one-time service
- Our maximum clients are satisfied with our services.