Registering a public limited company in India is the most appropriate business structure for entrepreneurs planning to start a large business. Registering public company in India requires at least 7 members and there is no limit to the maximum number of members / shareholders to establish a public limited company. Registering a public limited company in India enjoys all the privileges of the company, along with the characteristics of limited liability. Public companies are listed on the stock exchange to raise funds from the general public. Therefore, a joint-stock company must comply with some government regulations and form a joint-stock company.
A public limited company registered under the provisions of the Companies Act 2013. Members of limited liability companies registered in India enjoy the characteristics of limited liability companies, and this type of company also has the right to raise public funds through the issuance of shares.
Also, the rules and regulations of public companies are becoming more stringent than those of limited liability companies. Nevertheless, it is advisable to include a public company to provide the benefits of a limited liability company with features such as easy transfer and ownership of shares.
Documents required to Incorporate a Public Limited Company:
It is very important to submit all the necessary documents about the registration of a Public Limited Company to avoid legal complications:
1. Passport Size Photographs Of all the Directors;
2. Copies of the Identity Documents of all the Directors Aadhar Card, Voter Card, PAN Card; 3. DSC (Digital Signature Certificate) of all the Directors;
4. DIN (Director Identification Number) of all the Directors; 5. In case if the office is a rented property, the rent agreement. In case the office is an owned place the property ownership documents;
6. The water bill and the electricity bill of the business place; 7. No objection certificate by Landlord. Association; 8. Memorandum of Understanding (MOA);
9. Articles of Incorporation (AOA).
Public company registration procedure:
What are the steps to get a public company registration?
1. All legal requirements must be complied with, including B. Number of directors, number of shareholders, minimum paid-up capital. When this step is complete, the steps after registration are complete.
2. The next step is to get the DSC and DIN of the company’s directors. Only individuals can be directors, not individuals or groups such as LLPs or financial institutions. Directors do not have to be shareholders of the Company.
3. To be recognized as a registered office, you need the appropriate company address. The registered office address must be registered with the registrar of the company under the jurisdiction of the office. All business communications are sent to the registered office address, so this office address must be entered correctly. The registration fee depends on the authorized capital of the company.
4. Before the registration process, the name of the Company has to be approved by the ROC. For a Public Limited Company, the name must end with the word “Limited”. This application will be filed in the RUN form of the Ministry of Corporate Affairs. It is better to provide a list of names in the order of preference, in case a particular name is not available. 5. Once the name of the Company has been approved the crucial documents of the Company that is the MoA and the AoA need to be executed. 6. Once the documents are prepared they need to be submitted to the ROC for verification. 7. Once the verification is done the ROC registers the company and issue the incorporation certificate along with the CIN of the Company. 8. The business cannot be started immediately after receiving the COI. The business has to apply for a certificate of commencement within 180 days of the COI stating that all the subscribers have paid the subscription money.
Requirements for registering Public Limited Company:
- Minimum 7 shareholders are required to form a Public Limited Company.
- A minimum of 3 Directors is required to form a Public Limited Company.
- A minimum share capital of Rs.5 lakh is required.
- DSC of one of the Directors is needed when the self-attested identity copies and address proof are submitted.
- DIN for the Directors is necessary.
- Application is to be made for the selection of the Name of the Company.
- An application that comprises the main object clause of the company is made. This object clause will define the main objectives of a Company after the incorporation.
- The application is submitted to the ROC along with the necessary documents like MOA, AOA, a duly filled form DIR-12, Form INC 7, and Form INC -22 is needed.
- Payment of the registration fees that are prescribed by the ROC.
- Once the ROC has approved the company should apply for the business commencement certificate.
Benefits for registering a Public Limited Company In India:
- Separate Legal entity : A public limited Company is considered to be a separate legal entity from the shareholders. The public limited company has a perpetual existence and can have its PAN, bank account, approvals, contracts, licenses, assets, and liabilities.
- 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.
- 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.
- 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.
- 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.
- Management : The organization is controlled by the Board of Directors. This Board of Directors is elected by the investors.
The experts of Legal Litigator helps companies & startups for their registration work. Legal Litigator is a place dedicated to professional excellence, personal and high quality service and effective solution-oriented advocacy. We deliver quality work, personalized service and extraordinary value to our Clients. You can Contact us for your public limited company registration.