How to Register a Public Limited Company in India?
Public limited company registration is done as per the rules and regulations of the Companies Act, 2013. A public limited company can offer its share to the general public either through Initial Public Offerings (IPO) or by trading on the stock market.
Overview of Public Limited Company Registration
Public limited company registration is the ideal choice for an individual to start a small or medium scale business as private limited companies enjoy all the benefits of a corporate entity with limited liabilities. Like any other company, public limited company registration is done as per the Companies Act’s provisions, 2013.
A public limited company can sell its share to the general public to raise the share capital of the company. It can be formed with a minimum number of seven members and a minimum of three directors. There are no rules and regulations regarding the maximum number of members a company can have, but the maximum number of directors a public limited company is 15. It is necessary that one of the company directors must be an Indian resident and has spent at least 182 days in India during the previous financial year.
A public limited company registration avails the benefits of a private limited company and more transparency and easy transferability of shareholding and ownership.
Characteristics of Public Limited Company Registration
Advantages of Public Limited Company Registration
Necessary Documents Required for Public Limited Company Registration
Below mentioned are the documents that are necessary for the public limited company registration; the applicant company has to collect and submit these documents along with the incorporation application.
- Shareholders and directors PAN Card.
- Designated shareholders and directors have to submit their identity proofs such as PAN card, Aadhar Card, Driving license, Voter ID card, or any other approved Identity proof.
- The directors and shareholders of the company have to submit address proof. The details of the provided address proof must be the details of the PAN card.
- The applicant company has to provide utility bills as proof of the registered office of the company. Utility bills can be a telephone bill, electricity bill, water bill, gas bill, etc. But they should not be older than two months.
- If the company’s registered office is on a rented or leased premise than the No Objection Certificate from the owner of the premises.
- All the designated directors have to provide Directors Identification Number (DIN).
- All the directors of the company must obtain a Digital Signature Certificate (DSC).
- Memorandum of Association (MoA) of the proposed company.
- Article of Association (AoA) of the proposed company.
Public Limited Company Registration Procedure
- Applying for Digital Signature Certificate
All the proposed directors of the company have to apply for the Digital Signature Certificate (DSC) as DSC is the most important in the public limited company registration process as it will be used to sign e-forms on the online platform and DSC is a valid and safe method to file documents on the online platform.
DSC can easily be obtained by the directors from the nearest certifying authority or Charted Accountant. Director has to provide certified copies of mentioned identity proof. The time taken in obtaining the digital signature certificate is 2-3 working days.
- Apply for Directors Identification Number
The Ministry of Corporate Affairs simplifies the director’s Identification Number or DIN obtaining process. Now a proposed director of the company can obtain a director identification number by filing a SPICe+ form. Under the principal Act, it is mandatory for all the directors of the company to obtain DIN in order to complete the process of public limited company registration.
- Name Verification
The next step is to register the proposed name of the company. The availability of the company name can be checked on the official online portal of the Ministry of Corporate Affairs (MCA).
Visit the official online MCA Portal, then click on ‘MCA Services’ and then click on ‘check Company name.
The name selected by the applicant must be unique and must not be similar to any other name of any organization. The name of the company must not violate any provisions relating to infringement of name or title.
- Filing of Form SPICe+
After the company’s name has been selected and approved, the applicant company can now file form SPICe+ to obtain the company incorporation certificate. Along with the SPICe+ from the applicant company has to file all the necessary documents asked by the authorities and prescribed under the principal act such as Article of Association (AoA) and Memorandum of Association (MoA), as these two documents contain the information about the goals, objectives, visions, aims, functions, responsibilities of members, directors and the definition of the proposed company.
The concerned higher authorities will verify every document submitted by the applicant, along with the applications. This process of verifying documents can take up to 8 to 10 days.
- Certificate of Incorporation
After all the application and documents are received by the concerned authorities and verified all the documents and satisfied by the submitted information and documents, the company will receive the Certificate of Incorporation.
The certificate of Incorporation includes details like Company Identification Number (CIN) and the date of incorporation.
- PAN and TAN of the Company
After obtaining the certificate of incorporation, the applicant company can now apply for the TAN and PAN application with the Ministry of corporate affairs (MCA). The process for obtaining TAN and PAN of the company may take 2 to 4 working days.
- Opening a Bank Account
After the private limited company has received TAN and PAN for the company, the applicant company has to open a bank account in the name of the company. The company’s bank account will be open by the certificate of incorporation and TAN and PAN of the company.
Public limited company registration is the ideal choice for an individual to start a small or medium scale business as private limited companies enjoy all the benefits of a corporate entity with limited liabilities. Just like any other company, public limited company registration is done as per the provisions of the Companies Act, 2013.