Public Limited Company
Registration

Public limited company registration

A Public Limited Company is listed on a stock exchange, offering limited liability. Governed by the Company Act 2013, its stocks are available through Initial Public Offering or stock market trades. Forming a Public Limited Company requires a minimum of three Directors with no maximum limit. Stringent regulations apply. The paid-up capital is Rs.5 Lakh or a higher prescribed amount. Naming conventions mandate the suffix 'limited' for all companies under the Companies Act 2013.

Characteristics of public limited company registration

  • A public limited company enjoys limited liability and can invite public deposits and equity participation.
  • It ensures perpetual succession and is managed by the Board of Directors.
  • Forming a public limited company requires a minimum of 7 shareholders.

    Pre-requisites

    • The proposed Public Limited Company must have a registered office address.
    • Each subscriber and Director must possess a Digital Signature Certificate (DSC).
    • Directors need a Director Identification Number (DIN).
    • Forming a Public Limited Company requires a minimum of 3 and a maximum of 7 shareholders.

    Documents required for Public Limited Company:

    For Indian Citizens:

    • PAN card
    • Aadhaar card
    • Address Proof (Recent bank statement or mobile phone bill)
    • Passport size photo

    For Foreign Nationals:

    • Passport copy
    • Address proof copy
    • Nationality proof copy
    • Two passport-sized photographs

    Register office documents

    • A rental agreement is required if the office is leased.
    • An electricity bill (not older than 2 months) is necessary.
    • If the office is not rented, a No Objection Certificate (NOC) from the landlord is needed.

    Procedure to register

    Step 1: Name Application
    Apply for the company's name reservation through an application submitted to the registrar of companies. The applicant can provide two names and have one opportunity for resubmission.

    Step 2: Name approval/Rejection
    The Central Registration Centre (CRC) reviews the application and may either approve or reject the proposed names.

    Step 3: Application for DSC
    Obtain Digital Signature Certificates (DSC) for all subscribers and Directors of the company.

    Step 4: Preparation of MOA and AOA
    Draft the Memorandum of Association (MOA) and Articles of Association (AOA) and attach the digital signature certificates in both documents.

    Step 5: Forms and Documents filing
    File application forms for Private Limited Company registration along with MOA, AOA, and other necessary documents. Ensure payment of prescribed fees.

    Step 6: Certificate of Incorporation
    Upon satisfaction, the Registrar of Companies (ROC) issues the Certificate of Incorporation. Additionally, Director Identification Number (DIN), Permanent Account Number (PAN), and Tax Deduction Account Number (TAN) will be allocated.

    FAQ


    Public limited companies face more stringent compliances due to dealing with public funds compared to private limited companies. In addition to tax-related obligations, they must adhere to various annual and periodic compliances with ROC/MCA, SEBI, RBI, and other regulatory bodies.

    Yes, a foreigner or NRI can serve as a Director in a Public Limited Company after obtaining a Director Identification Number (DIN). However, at least one Director must be an Indian citizen.

    Ownership and management are distinct in the company. Shareholders don't have the right to engage in day-to-day management activities.

    Authorized capital is the limit set by the ROC for capital issuance. It determines the maximum shares that can be offered to the public. Paid-up share capital, however, is the portion of capital actually paid by shareholders.

    Typically, company registration takes 8-15 days. Earnlogic offers the best hassle-free registration services, simplifying the process, especially through online registration.

    Yes! There are no obstacles, yet the employment agreement might have certain limitations. For more information, feel free to reach out to us.