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Public Limited Company Registration

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What is a Public Limited Company?

inner choose imgA Public Limited Company is the most suitable & trusted form of business registered. Public Limited Registration is suitable for medium to large-scale businesses. At least there should be 7 shareholders and 3 directors during incorporation. A public limited company is a separate legal entity from its owners. It can enter into agreements under its own name. It has its own separate set of rules, obligations, regulations, and legal rights.

The primary reason for going with Public Company incorporation is shareholders’ limited liability. Shareholders are only responsible for the unpaid part of their shares. Promoters prefer Public companies that are aiming for listing on the stock exchange. Public limited company are businesses whose stock is traded on the stock exchange or that offer fixed deposits. A public limited company has all the benefits of a private limited company, including the ability to accept any type of membership, the simplicity of share transfers, and a high degree of openness.

Shares of public companies are freely transferrable unlike in private companies. The shareholders are free to buy and sell the shares to anyone. Banks & Financial institutions also prefer this entity for loans and funding. Although there are extra MCA compliance and applicability of other rules and regulations.

Table of Content

One Person Company Compliances

Advantages of Public Limited Company Registration

Advantages Public Limited Company Registration
  1. No Minimum Capital – There is no requirement of any minimum capital to register a company in India.

  2. Limited Liability – A Company is a separate legal entity. Shareholders of any Company have limited liability.

  3. Perpetual Succession – A Company is a separate legal entity. It exists even after the death of the member incorporated the company.
  4. Business Credibility
    Unlike normal Partnership firms and unregistered entities, company registration gets more recognition as they are regulated by law.
  5. Funding Options – A registered company is the best option to raise funding from bank or investor.
  6. Shares are easily transferable – Share in Public Company are freely transferrable to any person

Documentation for Public Limited Registration

Passport size Photograph

Copy of PAN Card

Copy of Electricity Bill

Sale Deed (if owned)

Copy of Aadhar Card

Address Proof (Bank Statement/Mobile/Telephone Bill)

Copy of rent agreement (if rented)

NOC

OPC Compliance

Our Packages

Basic Plan

₨14000/-

₨/

  • Icon 7 Digital Signatures (DSC)
  • Icon 3 Director Identification Number (DIN)
  • Icon Certificate of Incorporation
  • Icon MOA and AOA
  • Icon ROC & Stamp duty
  • Icon EPFO Registration
  • Icon ESIC Registration
  • Icon E-Pan Card of Company
  • Icon TAN or TDS Number
  • Icon Bank A/c Opening Support
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Popular

Premium Plan

₨17000/-

₨/

  • Icon 7 Digital Signatures (DSC)
  • Icon 3 Director Identification Number(DIN)
  • Icon Certificate of Incorporation
  • Icon MOA and AOA
  • Icon ROC & Stamp duty
  • Icon EPFO Registration
  • Icon ESIC Registration
  • Icon E-Pan Card of Company
  • Icon TAN or TDS Number
  • Icon Bank A/c Opening Support
  • Icon E-Pan Card of Company
  • Icon GST Registration
  • Icon MSME Certificate
  • Icon Trademark Filing
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Standard Plan

₨15500/-

₨/

  • Icon 7 Digital Signatures (DSC)
  • Icon 3 Director Identification Number (DIN)
  • Icon Certificate of Incorporation
  • Icon MOA and AOA
  • Icon ROC & Stamp duty
  • Icon EPFO Registration
  • Icon ESIC Registration
  • Icon E-Pan Card of Company
  • Icon TAN or TDS Number
  • Icon Bank A/c Opening Support
  • Icon GST Registration
Checkout

Note:-

  1. The above cost varies from state to state as per its stamp duty
  2. Trademark filing excludes government fees.

Procedure for registering a Public Company

  • Step-1: Acquire a Digital Signature Certificate (DSC)
  • Step-2: Director Identification Number (DIN)
  • Step-3: Name Reservation for the Company (SPICe+ Part A)
  • Step-4: Submission of Company Details (SPICe+ Part B)
  • Step-5: Preparation and Submission of Incorporation Forms (SPICe+ MOA and AOA)
  • Certificate of Incorporation
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Requirements for registering a Public Company

  • 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 two.
  • Registered office address in India

Comparison of different types of entities

Sl. No. Particulars Private Limited One Person LLP
1
Eligibility
Any individual may form a PLC.
Only a natural person who is an Indian citizen and resident in India, shall be eligible to icorporate an OPC.
Any individual and body corporate may be a partner in LLP.
2
Taxation
Taxed at 30% plus surcharge and cess as applicable.
Taxed at 30% plus surcharge and cess as applicable
Taxed at 30% plus surcharge and cess as applicable.
3
Closure/Dissolution/Winding ups
Can be initiated- Voluntarily, or By the Tribunal
Can be initiated- Voluntarily, or By the Tribunal
Can be initiated- Voluntarily by the partners or By the Tribunal
4
Existence or Survivability
PLC is not dependent on the directors or shareholder. Can be dissolved only voluntarily or by Regulatory Authorities.
Existence of an OPC is not dependent on the Director or Nominee Director. Could be dissolved only voluntarily or by Regulatory Authorities.
LLP can continue its existence irrespective of changes in partners.
5
Credibility
High
Medium
Medium

Benefits of registering a Public Company

Branch Office Registration
  • Protection for shareholders in proper legal terms.
  • Open for funding from outside India.
  • Proper role segregation in terms of shareholders and directors.
  • Shares are easily transferable
  • Shares can be listed in the Stock Exchange

Mandatory Compliances of Public Company every year

  • Statutory audit by a chartered accountant
  • Annual filings to registrar of companies
  • Maintaining Minutes and statutory registers
  • Filing of ITR
  • Minimum number of board and general meetings as prescribed under the Act
  • Appointment of Auditor
FAQ

Frequently Asked Questions

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.

For kick starting a public limited company, there must be at least 7 shareholders and 3 directors and the catch here is that the 3 directors should also be shareholders.

No a form once submitted cannot be refilled but if mentioned by MCA as there might be any mistakes and marked as For Resubmission.

Can the shares be exchanged easily in public company ?

The compliances are very high in terms of a public limited company as they deal with the stocks and also direct public share market trades under company’s name.

Attract funding in terms of venture capitals and Angel investors. Limited liability of shares and protection for shareholders. Open for public to invest into in the name of company stocks. Can make its own property and debts and as such in the name of the Company. The stock exchange would mention the company’s stock in London exchange.

Company name gets applied through SPICE part A. You can get the name via incorporation too. Separate filing of names is not mandatory.

Company registration is mandatory in India to start any business, so fixing the business structures is crucial. In India, there are seven different types of company registration: • Sole Proprietorship Registration • One-person Company Registration • Partnerships Firm Registration • Limited Liability Partnership (LLP) Company Registration • Private Limited Company Registration • Public Limited Company Registration • Section 8 Company Registration

The name and object of the company could differ and not be in consonance with each other. Promoters can keep the Company name on their initials. No need to change the company name in case of a business activity change. No need to get any sort of NOC whose name is being used in Company’s name.

Yes, NRIs, foreign nationals, and foreign entities can register a company and invest in India, subject to the Foreign Direct Investment norms set by the RBI. However, incorporation rules in India require for one Indian national to mandatorily be a part of the company on the Board of Directors.

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