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1. Overview of Public Limited Company Registration

1. Public limited companies enjoy all the rights of a corporate entity with limited liabilities and it is an ideal choice for the small and medium scale enterprises who wish to raise the equity capital from the general public.Below we are going to provides full knowledge of the features, procedure and document requirement for Public Company Registration.

What is a Public Limited Company?

Just like other companies, Public Limited Company is also registered as per the rules and regulations of the Companies Act, 2013. A public Company enjoys the benefits of limited liabilities for its members and has rights to sell its shares for raising the capital of the company. It can be incorporated with a minimum number of three directors and has more stringent rules and regulations as compared to a Pvt. Ltd. Company.

It must have a minimum number of seven members whereas there is no limit for the maximum number of members. It provides all the benefits of a private limited company along with more transparency and easy transferability of ownership and shareholding. Name, shares, formation, number of members, management and directors, etc differentiates Public limited company from the private limited companies.

Documents Required for Public Limited Company Registration

An applicant has to collect all these documents to file along with the incorporation application:

• Identity Proof such as Aadhar card, PAN card, Driving License, Voter Id of all the designated directors and shareholders.

• Address Proof of all the proposed directors and shareholder of the company.

• Address Proof of all the proposed directors and shareholder of the company.

• PAN card details of all the directors and shareholders

• Utility bill such as telephone, gas, water or electricity bill of the registered office as a residential proof of the business place. It should not be older than 2 months.

• Utility bill such as telephone, gas, water or electricity bill of the registered office as a residential proof of the business place. It should not be older than 2 months.

• An NOC or No Objection Certificate from the landlord of the business place.

Features of Public Limited Company Registration

Here are some important features of Public Limited Company:

• Number Of Directors In The Company

As stated in the provisions of Companies Act, a public company must have a minimum number of 3 directors to incorporate a company whereas there is no restriction on the maximum number of directors

• Name Of The Company

All the Public limited companies must add “Limited” word at the end of their name. it is denoted as an identity of a public company.

• Prospectus Of The Company

• Prospectus of the company is mandatory for the public limited companies. It is issued by the proposed company for its general public. It is a note of comprehensive statements of works and affairs of the company. However private companies have no such compliances as they don’t have rights to invite the public for their shares.

• Number Of Directors In The Company

• Perpetual Existence: A private limited company has a lifelong existence. Private limited companies are considered as separate legal entities and are separate from the existence of their owners which means they cannot be dissolved or end because of the death, retirement or insanity of any of their member/ director/ shareholder.

• Paid-Up Capital

• As per the requirements of the act, no minimum capital required for the registration.

Benefits of Public Limited Company Registration

Limited Liabilities For The Shareholders Of The Company

• Shareholders of the public company enjoy the benefits of limited liabilities under which their assets are safe and cannot be used to clear the debts and losses of the company. Despite of it, the shareholders are responsible for their own legal offenses. All the members, directors and shareholders enjoy this right and their assets cannot be seized by any bank, creditors or government bodies.

Perpetual Succession

• A public limited company is considered as a corporate body that has perpetual succession. Means in case of death, retirement, insanity, and insolvency of one or more members/ shareholder/ directors, the company still continue its existence.

Improved Capital Of The Company

• In a public limited company, the general public is invited to buy the shares of the company. Hence, anyone can invest in a public company that improves the capital of the proposed company.

Borrowing Capacity

• A public company can enjoy unlimited sources for borrowing funds. It can issue equity, debentures and can accept the deposits from the general public by selling its shares. Moreover, most of the financial institutions find public companies more prominent than other unregistered companies.

Public Limited Company Registration Procedure

Step 1: Apply For The Digital Signature Certificate

• First of all, you have to apply for the Digital Signature Certificate for all the proposed directors in the company. DSC is used to sign the e-forms and is an authentic and safe method to file all the documents on an electronic platform. It is a mandatory document.A director can easily obtain DSC from the nearest Certifying Authorities or CAs with self-attested coppices of their identity proof. It takes around 1 -3 working days to obtain a DSC.

Step 2: Apply For DIN

• Ministry of Corporate Affairs has simplified the DIN procedure, as an applicant can apply for it through the SPICe+ form and do not require filing any other form. It is mandatory for all the directors of the company to apply for their Director’s Identification Number.

Step 3: Name Verification

• The third step involves name registration of the company. You can check the name availability through the MCA portal by following this step Visit the MCA Portal> select the MCA services> Click Check Company Name Note: The company name should not be taken or registered and should not be similar to a brand name.

Step 4: Filing Form SPICe+

• Once the company’s name has been approved you can now file the SPICe+ form to avail the company incorporation certificate. Along with it, you have to file all the required documents such as MOA (Memorandum of Association) and AOA (Article of Association). These two documents contain the details of the mission, objectives, aims, visions, business activities, responsibilities of all the directors and shareholders and definition of the proposed company. All the documents and applications are further verified by the higher authorities and it takes around 7 to 9 working days.

Step 5: Obtaining Certificate Of Incorporation

• Once all the applications and document to have been received to the authorities and they have verified it, the company would receive the Certificate of Incorporation which will include CIN and date of incorporation.

Step 6: Availing The PAN TAN Of The Company

• Once you have got the Certificate of Incorporation, now you can apply for the PAN and TAN application by the MCA. It would take around 1 to 3 working days.

Step 7: Open A Bank Account

• With the help of PAN card and Certificate of Incorporation, you can easily open a bank account at your Company’s name.
And Here You Are Done With The Public Company Registration.

Requirements for the Public Company Registration

• According to the provisions of Companies Act, 2013 here are the requirements you need to fulfill to incorporate a Public company in India:

• The proposed company must have a minimum number of 7 shareholders

• The proposed company must have a minimum number of 3 directors

• No minimum capital required

• At least one director should have a Digital Signature Certificate

All the directors need to have a DIN
• Memorandum of Association and Article of Association.

Frequently Asked Questions

Q What are AOA and MOA?

AOA is abbreviated as the Article of Association. It defines the internal constitution of the company while MOA (Memorandum of Association) represents the mission, vision, and business object of the company before its incorporation.

Q What are DSC and DIN?

DSC is abbreviated as the Digital Signature Certificate, which is issued by the certifying authority to sign the electronic documents. DIN is the Director Identification Number which is allocated along with the Certificate of Incorporation through SPICe+ form.

Q. How many does it take to register a public limited company?

It generally takes 15 business days to register a public limited Company.

Q. What is the validity of the Public Limited Company Registration?

The registration is valid throughout the life of a company.

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