Public Limited Company Registration
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Within 10-15 Days
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What is Public Limited Company
A Public limited company is a most trusted entity registered in India. It is most suited for doing medium and large business in India. A Public limited company is a type of widely held business entity governed and incorporated under the provisions of Companies Act, 2013. Registration of Public limited company requires a minimum of 7 shareholders and 3 Directors. Shareholders and Directors could be the same person while applying for Public limited company registration in India. The most important feature of a registering a Public limited company is that it limits shareholders liability to the unpaid money due on shares held by him and has a separate legal identity. Banks give more preference to the Public Limited Company than any other entities for granting any kind of business loans. Shares of a Public Limited Company can be traded in stock exchange and are easily transferable within its members.
Easy external funding options are available for a Public limited company from angel investors, Venture Capital Firm and Banks. If you have any big business idea and it needs large amount of funding from public, then registering the business as a Public limited Company is the best deal. The documents required to register a Public limited Company are moderate and they are beneficial in future expansion.
Unilex being the professionally managed firm provides Public limited company registration within 10-15 working days*. Our professionals help in estimating the cost of Public limited company registration, document required for Public limited company and hassle free procedure for Public limited company registration.
Advantages of Public Limited Company Registration
The greatest benefit of public limited companies is limited liability of its members, If anything happens to the company, members shall not be personally affected and shall only be liable for unpaid amount of shares.
Raising Capital from Public
The most obvious advantage of being a public limited company is the ability to raise share capital from the public for growth and diversification, particularly where the company is listed on a recognized exchange.
Continuity of Existence
As Public limited companies are separate legal entities and enjoys perpetual succession which means continuation of its existence, unaffected by the death of any of its owner(s) or the transfer of its shares to a new entity.
Since this type of business is often listed in a stock exchange,people will be able to easily and quickly recognize the brand or name of the company. The more brand recognition and capital a company has, the more business and it will have.
Being a public Company member or shareholders, transfer of shares can be done easily. There is no such restriction in its Articles regarding transferability of shares.
A public limited company can easily obtain financing to bankroll its operations. Banks and other financial institutions are more willing to extend financing to this type of company than to smaller forms of business entities.
Mandatory Requirements for Public Limited Company Registration
- DIN and DSC of all the Directors
- Minimum 3 Directors
- Minimum 7 shareholders
- There should be some amount as paid up share capital
- At-least one Indian resident Director out of three.
- Registered office address in India
New guidelines for selecting the name of a Public limited Company
- Name and object of the company could differ entirely and not necessarily to be in consonance with each other
- Promoter can keep Company name on their initials and the same could be abbreviated
- No need to change company name in case of business activity change
- No need to obtain any sort of NOC whose name is being used in Company’s name.
Documents For Public Limited Company Registration
- Passport size Photograph
- Copy of PAN card
- Copy of Aadhar Card
- Address Proof (Bank Statement/Mobile/Telephone Bill)
For Registered Office
- Copy of Electricity Bill
- Sale Deed (if owned)
- Copy of rent agreement (if rented)
Cost Of Public Limited Company Registration
|Notary and Stamping Charges||1200|
Note: Stamp duty Extra for States: Punjab, Kerala and Madhya Pradesh.
Public Company vs Private Company Registration- which business form to choose
For any startup or Entrepreneur, it is the most crucial decision as to which form of entity they should register in India to do business. Here we have drafted some of the important points based on various factors to help you out in your decision making process:
|S. No.||Particulars||Private Limited||Public Limited|
|1||Minimum Paid Up Capital||No minimum criteria||No minimum criteria|
|2||Transfer of Shares||Restricted||Freely|
|4||Listing||Cannot be listed on a stock exchange & is held privately by the members.||Can be listed on recognized stock exchange and trade publicly.|
|5||Subscribing Shares||Has no right to invite public for subscription.||can invite the general public for subscribing shares of the company.|
|6||Managerial remuneration||Cannot Exceed more than 11% of Net profits.||No restriction|
*Directors and Shareholders can be the same person.
*Directors and Shareholders can be the Same person.
Mandatory Compliances of a Public Limited Company every year
- Minimum number of board and general meetings as prescribed under the Act
- Statutory audit by a chartered accountant
- Filing of ITR
- Annual filings to registrar of companies
- Maintaining Minutes and statutory registers
Procedure For Registering Public Limited Company
Obtaining DSC and DIN(1-3 Working Day)
- Digital Signature Certificate(DSC) and Director Identification Number(DIN) is required of the proposed Directors and Subscribers of the Private Limited Company and it can be obtained within 1-2 working days by filing Form DIR-3 (DIN application).
Application for Name approval(4-5 Working Day)
- After obtaining the DSC and DIN of the proposed subscribers and Directors, our team will get in touch for a unique name and along with that collect all the requisite documents in scan for the incorporation of the company through the SPICE i.e INC 32
Filing of Incorporation Forms(2-3 Working Day)
- After the name approval and review of all the documents required, we will submit incorporation Forms to MCA and once it gets approved Certificate shall be issued by the ministry and we will send the MOA & AOA via mail and DSC through courier.
FAQ’s On Public Limited Company Registration
What is a Public Limited Company?
A Public Limited Company is a Company limited by shares in which there is no restriction on the maximum number of shareholders, transfer of shares and acceptance of public deposits. The liability of each shareholder is limited to the extent of the unpaid amount of the shares face value and the premium thereon in respect of the shares held by him. However, the liability of a Director / Manager of such a Company can at times be unlimited. The minimum number of shareholders is 7.
What is the difference between ISO 9000 standards and IS/ISO 9000 standards?
A limited company has following advantages:
- Members’ (the directors and shareholders) financial liability is limited to the amount of money they have paid for shares.
- The management structure is clearly defined, which makes it easy to appoint, retire or remove directors.
- If extra capital is needed, it can be raised by selling more shares privately.
- It is simple to admit more members.
What entity is best suited?
The choice of entity depends on circumstance of each case. Private Limited Company has lesser number of compliance requirements. Therefore, generally where there is no requirement of raising of finances through a public issue and the ownership is intended to be closely held by limited number of persons, Private Limited Company is the best choice.
What is the minimum paid-up capital of a Public Limited Company?
As per the amendment in the Companies Act, 2013 there is no minimum amount of paid up share capital required for the Incorporation. There is no upper limit on having the authorized capital and the paid up capital. It can be increased any time, by payment of additional stamp duty and registration fee.
What is the Memorandum of Association (MOA) and the Articles of Association (AOA) of a company and what is the procedure in their regard?
On receipt of the name approval letter from the ROC the MOA and the AOA are required to be drafted. The MOA states the main, ancillary / subsidiary and other objects of the proposed company. The AOA contains the rules and procedures for the routine conduct of the proposed company. It also states the authorized share capital of the proposed company and the names of its first / permanent directors. After the MOA and AOA are required to be stamped.
A stamp duty is required to be paid on the MOA and on the AOA. The stamp duty depends on the authorized share capital.
How is the certificate of incorporation issued?
After all the documents are filed, the ROC calls the attorney on a specific date for scrutiny and making the corrections in the MOA and AOA filed. On complying with the same, the certificate of incorporation is granted to the attorney.
What are the documents to be filed with RoC every year?
Invariably, the Balance Sheet and Annual Return have to be filed every year. Other documents such as, Return of Allotment (Form No. Pas-3), Change of Registered office (Form No. INC-22), Change among the Directors (Form No. DIR-12), Charges (Form No. CHG- 1, 9, 4)etc., have to be filed within the due date from the events taking place in the company as per the Companies Act, 2013.
What is the minimum number of subscribers required for registration of a company?
Minimum no. of subscribers for One Person Company: One, Private Limited Company: Two, for Public Limited Company: Seven and for Producer company: Ten.
What is the minimum number of directors required to form a company?
Minimum no. of directors for One Person Company: One, Private Limited Company: Two, for Public Limited Company: Three and, for producer company: Five
Can the form once submitted, be rectified by the company user?
Once filed, the eForm cannot be rectified. You may, however, re-submit the e-Form, if the concerned MCA office has marked the status of your SRN as ‘Required Re-submission’.
Could Pub., (P), Ltd., etc. be used in place of the words Public or Limited in the proposed name(s) of the company while filing eForm INC-1?
You should use the words Public and/ or Limited in full only.