Public Limited Company Registration
A Public Limited Company is strictly regulated and is required to publish its true financial health to its shareholders. A Public Limited Company under Company Act 2013 is a company that has limited liability and offers shares to the general public. Its stock can be acquired by anyone, either privately through (IPO) Initial Public Offering or via trades on the stock market. For incorporation of Public limited company minimum seven shareholders and three directorsis required. A public limited company can be either a listed company or unlisted company on the stock exchange. However public limited company incorporated under special legislation are exempted from bearing any of the identifying suffixes.
Minimum Requirements To Register Public Limited Company
- Minimum Seven Persons
Seven people are needed to register the PLC in India. who shall act as shareholder of the company. However, there is no limit on maximum shareholder and three directors are needed but it shall not be exceed fifteen directors.
- Resident Director
A PLC can be formed only by an one Indian Resident and citizen. Resident in India means a person who had resided in India for a period not lesser than 182 days in the prior calendar year.
- Capital Requirement
There is not any minimum capital is required in public limited company and invest as per requirement of your business. But government fee is calculated on the basis of your capital.
- Unique Name of Company
The proposed name of the company should not resemble any existing company or LLP. Further you must check the trademark registry to ensure that the name does not match with any registered or applied trademark in India.
Documents Required For Public Company Registration
Documents of Designated Partners
- Two color passport size photograph of each Promoters.
- Pan card copy with self attest of each Promoters.
- Identity Proof (Voter ID / Driving License/ Passport) any one of each Designated Partners.
- Address Proof (Bank Statement / Electricity, Mobile, Telephone Bill) any one of each Designated Partners.
- Signed Declaration (s) from Promoters
Registered Address Related Documents
- Proof of Registered Office
- Utility Bill as Proof of Registered Address
- NOC from the owner of the premises
- If rented then Rent agreement
Public Limited Company Process
Digital Signature of Director (step 1)
Digital signature (DSC) is a basic requirement to initiate the Public limited Company Registration procedure as all the forms are submitted should be self-attested
Name Approval of Company (step 2)
The Name of the OPC should be cross-checked with the ROC and the trademark registry to avoid any infringement of someone else Trademark or Other Company /LLP Name. The selection of a proper name should be the starting point.
Filling for Incorporation (step 3)
One single application is required i.e. spice 32 to incorporate public limited company. With the approval of this the certificate is Issued.
PAN, TAN & Bank Accounts (step 4)
The issue of Pan Number and TAN is done automatically at the time of incorporation of the Company. There is no need to make any separate application. The PAN Number and TAN come printed on the certificate of incorporation itself, and after the registration of the Company, E-Pan and Tan letter is sent via email.
Frequently Asked Questions
Ans 1. The term Public Limited Company is the wider form of Limited company that includes no restriction from the maximum number of shareholders to the transfer of shares which cannot be done by a Private Limited Company. It raises its fund through public and accepts the public deposits. The Board of Directors has the power to govern and manage the Public limited company constituted as per the unanimous consent of the shareholders. However, there is a much more compliance burden on the Public limited company than Private Limited Company.
Ans 2. The Public Limited Company deals with the public money and it has to make rather heavy compliances strickly that is bulkier than the Private limited company. Apart from the regular compliances related to Income tax, there are many periodic and annual compliances to be made by a public limited company with ROC/MCA, RBI etc. In addition, these regulatory liabilities are to secure and promote the profits and welfare of all shareholders of the Public limited company.
Ans 3. There are several Benefits of a public limited company which are given below:
- The Public limited company has the feature of huge magnitude of capital than that of the Private limited company.
- It has a legal authority to trade on a stock exchange.
- There can be many shareholders, no limit
- The liabilities of the shareholders are limited. It means limited roughly to the face value of the shares they own. Moreover, shareholders do not have to take part in the day-to-day management of the business of the company.
- shareholders are entitled to transfer their shares freely without needing the consent of someone.
Ans 4. Of course, an NRI or Foreign National can be a shareholder or director in a public limited company of India. Besides, the requirements of being a sensible adult for becoming a director such a person must possess the DIN issued by MCA.
Ans 5. There are two methods of registering a public limited company anywhere in India which are given below:
OPTION 1
File the Integrated Incorporation Form INC-29 with the MCA.
OPTION 2
- Get approval and reservation of any of the proposed names through Form INC-1
- File Form INC-7 for incorporation of the public limited company.
- File Form INC-22, Form DIR-12 etc both with all required documents.