Public Limited Company Registration Online |

Public Limited Company Registration Online

A Public Limited Company has the benefits of limited liabilities and it can sell its shares to the general public for raising capital. Your decision to begin your entrepreneurial journey starts with the decision of selecting the right business structure to follow with. We respect your idea and want to be a partner in your journey. A partner who can advise you to select the right options for your business structure and provide legal and Tech support

Overview

Public Limited Companies are companies whose shares are traded in stock market or issues fixed deposits. For Public Limited Company Registration, the company must have minimum 3 Directors, 7 Shareholders and Maximum 50 Directors and need Rs 5 Lakhs of Paid up Capital.

Under section 2(71) of the Companies Act, 2013, a public company is understood as an entity which is not classified as a private limited company. Apart from this, the minimum paid-up share capital of a public company is prescribed as per the requirement of the companies act. A public company can also be understood as an entity which is not a subsidiary of a private limited company. these forms of business structures are considered by companies that have a large form of infrastructural plans.

What is a Public Limited Company?

A Public Limited Company is a type business entity which has limited liability features and offers shares to the general public for raising equity capital. It is governed by Companies Act, 2013 and registered under the Ministry of Corporate Affairs. It can be incorporated with a minimum number of seven members and at least three members must be the directors of the company.

Advantages of Public Limited Company registration

Shares can be transferred easily

Increased Borrowing Capacity

Separate Legal Entity

Shares can be listed in the Stock Exchange

Shields personal assets from business liability, limits liabilities of Directors.

The Public Limited Company continues to exist even after the death of the Shareholder.

High brand image, more transparent & credible compared to other business structures.

Public Limited Company being an identity, can own, acquire and alienate, property in its name. Property owned could be anything like machinery, building, patents, intangible assets, land, residential property, factory etc.

Minimum requirements for Public Limited Company registration

Minimum of seven members are required

At least three members must be the directors of the company

Minimum of 5 lakh rupees is required for share capital

Liabilities of Public Limited Company

A Public limited company must hold a board meeting annually

File annual returns with MCA (Ministry of Corporate Affairs)

Annual account audit by a CA is mandatory

Minimum 3 directors, Minimum 7 shareholders

Minimum 5 lakhs of share capital

Tax Liabilities of Public Limited Company

Public limited company is required to file annual return with the Income Tax Department

Annual account audit by a CA is mandatory

Process of Public Limited Company registration

Filing the Form

Applying for DSC and DIN

Verifying the Name of the Company

Filing SPICe Form

Submitting Documents

Incorporating the Company

Opening a Bank Account

Share Transfer Formalities by RTA

Documents required for incorporation of a public limited company

Identity Proof- Such as PAN Card, Aadhaar Card, Driving License and Voter ID

Utility Bills- Electricity, Water and Rent

Registered Office Address- Any utility bill can be utilised for this purpose

Address of the Shareholders

Digital Signature Certificate

Directors Identification Number

MOA and AOA

Documents you’ll get post incorporation

Post incorporation of Public Limited Company, you’ll receive the following documents:

Certificate of Incorporation

Permanent Account Number (PAN) of the company

Tax Deduction or Collection Account Number (TAN) of the company

Articles of Association (AoA)

Memorandum of Association (MoA)

Direction Identification Number (DIN)

Digital Signature Certificate (DSC)

EPF and ESIC registration documents

Company Master data

FAQs

What is a public limited company? How is it different from a private limited company?

As per the Companies Act, 2013 a public limited company is an entity that offers shares to the public. Public limited companies are different from private limited companies. Private limited companies do not offer shares to public.

How many independent directors have to be present in a public limited company?

Under the companies act, 2013- a public company has to have one independent director. Independent directors are determined based on their actions carried out for the welfare of the organisation. Their integrity is determined based on independent decision making functions which are carried out on day to day basis.

Is foreign direct investment allowed for a public limited company?

Up to certain extent FDI is allowed for a public limited company.

Are foreigners and Non-resident Indians allowed to be recruited as directors for a public limited company?

Yes foreigners and non-resident Indians are allowed to be recruited as directors for a public limited company. However, any entrepreneur going for public limited company registration has to secure requisite documentation such as foreign passports and visas. These documents have to be submitted to the registrar of companies.

Who manages the business of a public limited company?

The shareholders and directors carry out business activities relating to the business. However, when it comes to managing the business of a public limited company, then directors have the main authority for carrying out such activities. Shareholders only overlook the different processes that occur in the business.

How much time does it take to register a public limited company?

Public limited company registration is a complete online process. The total time for registering a Public Limited Company takes around 7-14 working days subject to document verification by MCA.

How much does it cost to set up a public limited company?

The cost depends on the number of members of the public company. Basic pricing of company registration including govt and professional fees would be around Rs. 10,999.

Statutory Compliance Required for Public Limited Company

A Public limited company must hold a Board Meeting at least once in every 3 months. In addition to the Board Meetings, an Annual General Meeting must be conducted by the Limited Company, at least once every year.

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Overview What is a Public Limited Company?Advantages of Public Limited Company registration Minimum requirements for Public Limited Company registration Liabilities of Public Limited Company Tax Liabilities of Public Limited Company Process of Public Limited Company registration Documents required for incorporation of a public limited company Documents you’ll get post incorporation FAQs Blog