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PUBLIC LIMITED COMPANY REGISTRATION

Public Limited Company Registration

Registering a public company in India is a significant step for entrepreneurs planning to raise capital from the public and expand their business on a larger scale. Public companies are governed by the Companies Act, 2013 and offer numerous benefits, including access to public funds and enhanced credibility.

This guide will help you understand the process, requirements, and benefits of registering a public company in India.

What is a Public Company?

A Public Limited Company is a company that can offer its shares to the general public, either through an initial public offering (IPO) or stock market listing. It has limited liability for its shareholders, ensuring personal financial safety while allowing the company to grow with public funds.

Features of a Public Company

  1. Minimum Members: Requires at least 7 members (shareholders) to start.
  2. Minimum Directors: Requires at least 3 directors.
  3. No Maximum Shareholders Limit: Public companies can have an unlimited number of shareholders.
  4. Transferable Shares: Shares can be freely traded and transferred.
  5. Mandatory Compliance: Subject to strict regulatory and statutory requirements.

Benefits of a Public Company

  1. Access to Public Funds: Ability to raise funds by issuing shares to the public.
  2. Limited Liability: Shareholders’ liability is limited to their share capital investment.
  3. Improved Credibility:Enhanced trust among stakeholders due to regulatory oversight.
  4. Growth Opportunities: Facilitates business expansion by raising significant capital.

Documents Required for Public Company Registration

For Directors and Shareholders

  1. PAN Card (Indian Nationals).

  2. Passport (Foreign Nationals).

  3. Aadhaar Card.

  4. Address Proof (Bank Statement, Utility Bill, etc.).

  5. Passport-sized Photographs.

For Registered Office

  1. Rental Agreement (if rented).

  2. Utility bill (not older than 2 months).

  3. NOC (No Objection Certificate) from the property owner.

Other Documents

  1. Director Identification Number (DIN).

  2. Digital Signature Certificate (DSC).

  3. Memorandum of Association (MoA).

  4. Articles of Association (AoA).

Step-by-Step Process for Public Company Registration

1. Obtain DSC and DIN:

  • Apply for the Digital Signature Certificate (DSC) and Director Identification Number (DIN) for the directors.

2. Name Reservation (RUN):

  • Reserve the company’s name through the Reserve Unique Name (RUN) form on the MCA portal. Ensure the name complies with the Companies Act

3. Draft MoA and AoA:

  • Prepare the Memorandum of Association (MoA) and Articles of Association (AoA), defining the company’s objectives and rules.

4. Filing for Incorporation (SPICe+ Form):

  • Submit the SPICe+ Form (Simplified Proforma for Incorporating Company Electronically) on the MCA portal.

  • Attach necessary documents, including MoA, AoA, and identity/address proofs.

5. Verification and Approval:

  • The Registrar of Companies (ROC) reviews the application. Upon approval, the company receives a Certificate of Incorporation.

6. Apply for PAN and TAN:

  • After incorporation, apply for the company’s PAN and TAN.

7. Open a Bank Account:

  • Open a current bank account in the company’s name for transactions.

Compliance Requirements for a Public Company

  1. Board Meetings: Conduct at least 4 board meetings annually.
  2. Statutory Audits: Regular financial audits by a certified auditor.
  3. Annual General Meeting (AGM):Mandatory every year to discuss financial reports and other resolutions.
  4. ROC Filings:
    • Form MGT-7: Annual Return.
    • Form AOC-4: Financial Statements.
  5. Income Tax Filing: File annual income tax returns.
  6. Secretarial Compliance:Adherence to secretarial standards issued by the ICSI.

Cost of Public Company Registration

The registration cost varies based on:

  • Authorized share capital.
  • Professional fees ( Company Secretary, Chartered Accountant, etc.).
  • Stamp duty and government fees.

Conclusion

Registering a public company is a strategic decision for entrepreneurs aiming for large-scale operations and access to public funding. While the process involves numerous legal and regulatory steps, partnering with experienced professionals can make the journey smooth and hassle-free.

 

Take the first step toward your business growth by registering your Public Limited Company and unlock the potential of public funding and credibility!