What Is A Public Limited Company?
Public Limited Company is a business entity which offers its shares to the public or whose securities are traded in the stock market. Such companies can raise substantial capital through the issue of shares to the general public. Minimum three Directors, seven shareholders and a registered office are required to incorporate a Public Limited Company in India. In a Public Limited Company, the members have to follow strict compliances as compared to a Private Limited Company. If you want to start a Public Limited Company, then you have landed on the right platform. This piece of information will give comprehensive knowledge about the procedure, eligibility, documents required for Public Limited Company Registration.
Advantages
1. Separate Legal Existence - Company is an artificial person created by law and is different from its members who compose it. It can own property, borrow money, manage bank accounts, employee people on its payroll, enter into contracts, and sue or be sued.
2. Perpetual Succession - This means that the membership of a company may keep changing from time to time, but this will not affect the continuity of the business.
3. Limited Liability to shareholders - Shareholders are not personally liable for any of the debts of the company, other than for the amount already invested in the company, and for any unpaid amount on the shares in the company, if any.
4. Raising funds from multiple avenues - Public companies can easily raise funds from Individuals as well as financial institutions via equity shareholding, preference shareholding, or debentures. Also, a public limited company can issue securities to the general public (IPO/FPO) without any restriction. The funds may be raised via equity shareholding, preference shareholding, or debentures etc after due compliances.
5. Other Benefits
- Easy Transferability of Shares
- Growth and expansion opportunities
- Value of the firm is shown by the market capitalization
- Easy liquidity for shareholders since they can buy and sell their shares
Checklist For Incorporating A Public Limited Company :
1. A minimum of 3 Directors and a maximum of 50 directors. Of all the directors in the business, at least one must be a resident of India. The directors can only be individuals and not entities like LLPs or Financial Institutions. If the Company is Listed Public Company Minimum 2 Independent Directors is also required.
2. A minimum of 7 Shareholders and there is no upper limit on the number of shareholders. At least 1 shareholder should be a resident of India. A director can be a shareholder.
3. Minimum Paid-up Share Capital of INR 5 lakhs is required for starting a company.
4. The registered office of a company does not have to be a commercial place. Even a rented home can be the registered office, as long as you have the requisite documents.
5. Your business must have a unique name that should not match with any existing companies or trademarks in India.
Steps To Incorporate A Public Limited Company :
Step 1: Application for DSC (Digital Signature Certificate)
Step 2: Application for the name availability
Step 3: Filing of verified documents along with E-MOA and E-AOA on the MCA portal to register a private limited company in form SPICE+ wherein application for various registration as listed below along with the application for Incorporation is done.
| Sr. No | Particulars | Mandatory/ Non Mandatory |
|---|---|---|
| 1. | Director Identification Number | Mandatory |
| 2. | PAN | Mandatory |
| 3. | TAN | Mandatory |
| 4. | Professional Tax Registration | Mandatory |
| 5. | Opening of Bank Account | Mandatory |
| 6. | ESIC | Mandatory |
| 7. | GSTIN | Not Mandatory |
| 8. | EPFO Registration | Mandatory |
Step 4: Obtaining Certificate of Incorporation from the Registrar.
Step 5: Depositing the Subscription money in the bank account, and filling of form for Certificate of Commencement.
Requisite Documents
For Directors and Shareholders
Identify the 3 directors (or more) and submit their following mentioned documents:
1. Identity Proof
a) PAN (Indian Nationals) or Passport (Foreign nationals) And
b) Passport / Driver’s License / Election ID / Ration Card / Aadhaar ID
2. Proof Of Residence
a) Bank Statement / Electricity Bill / Mobile Bill any one (Not later than 2 months)
3. Passport size photographs
For Registered Office
- Registered document of the title of the premises or notarized copy of lease/rent agreement in the name of the company along with a copy of rent paid receipt not older than one month;
- NOC from landlord to use the premises by the company as its registered office.
- Utility bills like telephone, gas, electricity, etc. showing the address of the premises in the name of the owner, which is not older than two months.
Incorporating A Public Limited Company At S. K. Agrawal & Co.
At S. K. Agrawal & Co. Pvt. Ltd., we will help you start your own Public Limited Company in less than 10-15 working days, subject to government processing times, and availability of all documents.
By following the steps listed below, you can start your own Company -
Our Experts will get in touch with you to collect your documents along with a simple checklist.
Submit the filled checklist along with your documents for verification. Your documents will be verified by our team of experts here at S. K. Agrawal & Co., and we shall take the process further. Our Team Member shall keep you informed throughout the process.
Once your documents along with the Checklist are submitted and verified, we shall proceed with the application of your DSC & DIN. In parallel to the DSC application, the application for name reservation shall be submitted to the MCA. The name of the Public Limited Company must end with the word “Limited”. This application is filed in the RUN form of the Ministry of Corporate Affairs. It is better to provide a list of names in order of preference, in case a particular name is not available.
Once the name of the Company has been approved, the crucial documents of the Company – MOA, and AOA have to be executed. We will file the incorporation documents with MCA in part B of a form called “SPICe Plus (SPICe +)” along-with the subscription statement. Usually, MCA approves the forms within 4 - 5 days once filed and issues the Incorporation Certificate with CIN.
The ROC, after proper verification of all the submitted documents, registers the company and issues a Certificate of Incorporation along with the CIN (Corporate Identification Number) of the Company.
We then begin the process of helping you obtain PAN & TAN for the company and opening a bank account in the name of the company.
Service Area
We provide strategic and qualitative advisory services to all our clients from domestic to international organizations, small, medium and large sized enterprises, assisting them with their incorporation and quality management services so they can establish their business successfully globally. To help them deal with their tax issues, financial and legal requirements we provide all support for post incorporation services, so they are able to run their business seamlessly. We are based at New Delhi and Faridabad, but our wings are spread to serve clients across the globe. Customer Satisfaction, Quality of Service and our Turnaround time are the drivers of our enthusiasm and success. We are continuously serving our client at Faridabad, Delhi, Gurgaon (Gurugram), Noida (Gautam Budh Nagar), Sonipat, Panipat, Palwal, Jind, Karnal, Meerut, Hapur, Kolkata, Mumbai (Bombay), Pune, Bangalore, Nasik, Aurangabad, Nagpur, Ludhiana, Amritsar, Mohali, Hyderabad, Bareily, Kanpur, Agra ,Mathura, Baddi, Rudrapur, Haridwar, Siliguri, Jamshedpur,Hubli and many other Industrial Areas.