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Public Limited Company Registration

Looking to register your business as Public Company and still not sure about its nature and documentation at incorporation stage?

We at Compliance Calendar LLP can help you register your Public Limited Company and do the follow up with the CRC at Ministry of Corporate Affairs as and when required during the complete registration process.

Public Limited is eligible to raise capital not only from its promoters, relatives, investors but also from the public at large by offering its shares for sale in open market. The shares of a public limited are freely tradeable and can be listed on a recognized stock exchange for real-time sale-purchase.

Shares of public company can be acquired by anyone, either privately through initial public offering (IPO) or via trading on the stock market. Since all the information relating to company are available in the public database, it is easy to authenticate the existence of the business which helps in improving credibility of public company.

A Public Limited Company is stringently regulated and is required to publish its true financial wellness to its shareholders and are usually constituted to generate capital from external sources, i.e. the general public for starting a business, business expansion, technological advancement, global expansion, etc.

As per Companies Act, 2013, Public company means a company which:

(a) is not a private company; and
(b) has a minimum paid-up share capital, as may be prescribed

Provided that a company which is a subsidiary of a company, not being a private company, shall be deemed to be public company for the purposes of this Act even where such subsidiary company continues to be a private company in its articles.

Public company may be formed for any lawful purpose by seven or more persons by subscribing their names to a memorandum and complying with the requirements as prescribed in the law. The board of the Public company comprises of a minimum number of three directors and a maximum of 15. The company may appoint more than 15 directors after passing a special resolution. These are elected by the shareholders during the annual general meeting. They act as the representatives of the shareholders in the management of the company. Public limited companies are headed by a board of directors and Key Managerial Personnel of the Company. Composition of the board of directors is set out in the company’s articles of association and the applicable rules and regulations. Shareholder liability for the losses of the company is limited to their share contribution only. This is what makes it a separate legal entity from its shareholders. The Public Limited Company can be sued on its own and not does not involve its shareholders.

Public limited companies are required by law to publish their complete financial statements annually. This ensures that they reveal their true financial position to their owners and to potential investors so that they can determine the true worth of its shares. A public limited company has many advantages over Private Limited Company and the ability to have any number of members, ease in transfer of shareholding and more transparency makes it popular amongst foreign investors.

Registration of Public Company

Public Company must have:

Minimum 7 (Seven) Shareholders
Minimum 3 (Three) Directors
There is no ceiling on the maximum number of members in a public company.
The shareholders of a public company can freely transfer their shares.
A public company can invite the general public for subscribing shares of the company.

The Incorporation procedure for a public company is similar to the private company. However, it is to ensure that the proposed company is in compliance with the minimum requirement of the members and Directors in a public company and MOA & AOA are drafted as per the requirement of the new Companies Act, 2013. The name shall be suffix by the word “Limited”. If you are planning to raise funds from the public through Initial Public Offer (IPO) in future then Start your company today with us by incorporating Public Limited Company or you can also convert your existing Private Limited to Public Company with the help of Compliance Calendar LLP.

Documents Required for Public Limited Company Registration

Public Limited Company is registered under the Companies Act, 2013 and regulated by the Ministry of Corporate Affairs (MCA) with its extended hand called Registrar of Companies of the respective states where the company will have its registered office address.

To register your business as Public Limited Company, there are certain set of documents required to begin with the registration procedure of Public Limited Company under the regime of Central Registration Centre (MCA).

You will be glad to know that most of the documents which are filed with the Department are drafted by us for your convenience. List of documents required from your end:

A. Identity Proof

Identity Proof is required for all the proposed shareholders and directors. Identity Proof will be PAN Card copy in case of Indian Nationals and apostilled/ notarized copy of Passport for Foreign Nationals. All Documents must be self-attested.

B. Address Proof

Two Address Proofs are required for proposed shareholders and directors. One is Driving License/ Passport/ Voter ID and Second is Bank Statement/ Electricity Bill/ Mobile Bill/ Telephone Bill.

C. Contact Details

Mobile Number and E-mail ID are required for all the proposed directors. It is to be noted that the Mobile Number and E-mail ID to be provided shall belong to the directors only and not of any professional or closed relatives too. Further, one email address of Company is also required.

D. Educational Qualification

Educational Qualification of the proposed directors is to be provided. It is not required to provide the proof for the educational qualification. The CRC (MCA) does not ask for its copies to be attached with the incorporation documents.

E. Registered Office

A recent copy of the Electricity bill/ Gas bill/ Mobile/ Telephone bill is required. A rental agreement or lease/sale deed along with NOC from the landlord with his/her consent to use the office as a registered office is also required. Rent Agreement would not be required if the place is in the name of any of the directors.

F. Draft Documents for SPICE+

Finally, based on the above documents provided we prepare the drafts documents as per the company law which are required to be submitted to CRC (MCA). At CCL, we make it simple with our experience and knowledge of regular Company Registration for you. You are not required to visit any place and we will complete the Company Registration procedure at the comfort of your home as the process is completely online.

Note: In addition to the above documents, you need to share with us the desirable company name and we will check its availability. Scope of the company, proposed share capital, place of business, profit sharing ratio are some of the basic information we do require from your end.

LEGAL PROCEDURES

The company registration is a legal process requiring knowledge of company law as well as attestation service by a Professional who must be either Company Secretary or Chartered Accountant or Cost Accountant. It is always prudent to consult a professional than a consultant in the company registration journey to make it seamless with zero apprehension of wrong submission of documents and declaration. At Compliance Calendar LLP, we have dedicated team for registration of companies anywhere in India. Recently, the MCA changed the Incorporation procedure to include DIN allotment, Issuance of PAN, TAN, GST, EPFO, ESIC, Profession Tax (only in Maharashtra) and Opening of Bank Account. The registration is done through Spice+ which has basically two parts:

Part A:

Name Reservation (Applicable to New Companies only)

Part B:

Company Incorporation
Application for DIN
PAN Application
TAN Application
GSTIN Application
EPFO Registration
ESIC Registration
Opening of Bank Account for the Company
Profession Tax Registration (only for Maharashtra)

Book a free consultation with Company Registration Professional at Compliance Calendar LLP today and do not let your dreams of becoming an entrepreneur take halt in the way to success.

Features & Benefits of Public Limited Company Registration

Limited Liability

One of the best features of Public Limited Company registration is that the liability of the person who invests money into the business (also known as shareholders) will be limited to the amount invested by them which also means that personal property of the promoters will remain safe and secure. This limited liability builds confidence of young entrepreneurs to fulfil their dream of having their own Company.

Separate Legal Entity

The separate legal entity feature gives your company to keep yourself and the company at length recognizing its own separate identity. In the eyes of law, Company and its Representatives are different personalities and Company can sue and be sued on its own name without the name of its shareholders or directors.

Perpetual Succession

This is what makes the registered company different from proprietorship or partnership firms where on the death of proprietor/ partners, the firm ceases to exist but in case of registered company, even the death of all directors/shareholders cannot stop the company to exist.

Easy exit and transferability

During the lifetime of the Company, if all or any of the shareholders wish to exit from the company, they can do so by simply transferring their shares. It is very easy to transfer shares to other person by way of share transfer arrangements. This gives shareholders the freedom to take informed decision whether to continue or not at any given point of time.

Owning Property

Company being a legal person can own property on its own name through its Legal Representative. The Property includes Intellectual Property (IPR) such as Trademark, Copyright, Patent and Design too. Company can also mortgage property the same way as a natural person to banks or any other financial institution.

Borrowing Capacity

Company being a Legal Person, when there comes a requirement to borrow capital or funds, it can be done through various modes of borrowing. Some of them could be Private Equity/ Angel Investor/ Venture Capitalist/ Short-term capital from Directors or their Relatives and Debts through Banks or FIIs.

Investment Ready

Any Investor who is looking to make investment generally prefers Limited Company than any other business structure. This is what makes a Limited Company investment ready. Public Limited Companies enjoy an increased ability to raise capital since they can issue shares to the public through the stock market. They can also raise additional capital by issuing debentures and bonds through the same market from the public. Debentures and bonds are in the form of secured or unsecured debts issued to a company on the strength of its integrity and financial performance by the general public or its members etc.

Frequently Asked Questions

What is a Public Limited Company?

Public Limited Company is the most sought form of Company Registration in India for those who wish to get money from Public. It is the most preferred form of business and regulated by Ministry of Corporate Affairs (MCA) under Companies Act, 2013 for those businesses who wish to go for public offering through IPO at later stage. A Public Limited Company is a type of business structure registered with MCA to give a separate legal existence to the business different from its directors and shareholders. This means that a company continues to exist even after the death of any member/director in the company.

Minimum Persons required to register a Private Limited Company?

A minimum of seven persons are required to form a Public Limited Company. It is not even important that members should be different from directors. In a company, three persons can act as Members and Directors both at the same time. Members and Shareholders are one in the same. That means an individual may become shareholder and director at the same time.

What is the minimum Capital Requirement for a Private Limited Company?

There is no minimum capital requirement to form a Public Limited Company. You may choose on your own how much paid-up capital you want to keep during the Company Registration. However, generally one five lac capital is kept as per most companies registered as public company.

How to choose and reserve the name of a company?

Name reservation is quite simple and easy to obtain. Our professionals will guide and help you in choosing the best suitable name of your public company according to name guidelines of company incorporation and trademark laws.

What is DIN and who all can become Directors of a Private Limited Company?

Director Identification Number (DIN) is a unique number assigned by the MCA to Individuals allowing them to become Director in any Company. Any natural person above the age of 18 years can become the director in the company after getting DIN. There are no specific regulations provided in terms of citizenship or residency, also a foreign national can become a director.

What is a Digital Signature Certificate (DSC)?

Digital Signature Certificates (DSC) are the digital equivalent (electronic format) of physical or paper-based certificates. Likewise, a digital certificate can be presented electronically to prove one's identity, to access information or services on the Internet or to sign certain documents digitally. SPICE+ forms are filed for online company registration after affixing the DSC. The subscribers to MOA & AOA shall possess DSC for submitting e-forms for incorporation.

What is the MOA and AOA of the Company and what are its significance?

Memorandum of Association (MOA) is a legal document prepared during the registration process of a company to define its relationship with shareholders and contains the main objectives of the company. Articles of Association (AOA) are by-laws of the company and it regulates management of a company and creates certain rights and obligations between the members and the company.

What are the Post Incorporation Compliance Under Companies Act, 2013 (MCA)?

Post incorporation compliances are easy and manageable. After incorporation is completed receiving COI, the company has to file Commencement of Business by filing eForm INC-20A and appoint the First Auditor of the Company. At CCL, Professionals are there to manage each and every compliance of your company. Get in touch with us to know the post incorporation compliance especially commencement of business.

Are the compliance of Public Limited company complicated?

No, With Compliance Calendar LLP, no compliance is complicated. Our team is here to manage each and every thing when it is about managing company compliances. It is important to know that the compliances are little more in public companies in comparison to private limited companies. Needless to say, we being the Professionally managed firm can look after your all compliances as and when applicable.

Can foreign national become Director/ Shareholder in the public company?

Foreign Citizen, Non-Resident can become Director/member in public company. There is no restriction as such under Companies Act, 2013. However, other compliances will trigger on including FEMA Compliances.

How can Compliance Calendar LLP help me in Public Limited Company Registration?

We are the market experts in registration and compliance of Companies. We can help you with end to end services in Public Limited Company Registration anywhere in India. Company Registration is a legal process and therefore it is prudent to assign the work to a professionally managed firm like CCL. Get in touch with us and book a free consultation.

Any confusion or query bothering you on company registration?

Not to worry at all! A Professional from our experienced team will resolve all your queries. Our Company Registration Experts will give you the best advice without any consultancy fees. Write to us at info@ccoffice.in or WhatsApp/Call us +91-9988424211 and we will be more than happy to be partner in your registration of public company.

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