Public Limited Company Registration
Starting from ₹5,000 + GST
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Table Of Content
Public Limited Company Registration Made Easy
Public limited registration refers to the process of registering a company as a public limited company under the Companies Act in India. This type of registration allows the company to offer its shares to the general public, and the shares are freely transferable among shareholders.
Public limited companies are required to comply with stricter regulatory requirements compared to private limited companies. They often opt for public registration to raise capital from a wide range of investors and to enjoy certain advantages such as enhanced credibility and access to public markets for raising funds.
Benefits of Public Limited Company Registration
Access to Public Capital
Public limited registration provides a significant advantage in accessing capital from the public through the issuance of shares. This avenue for fundraising is often substantial, allowing companies to finance large-scale projects, research and development efforts, and strategic expansions. It also diversifies the investor base, spreading risk and potentially attracting institutional investors and funds.
Enhanced Credibility
Public limited companies undergo rigorous regulatory scrutiny and compliance, which enhances their credibility in the eyes of stakeholders, including investors, customers, suppliers, and regulatory authorities. Compliance with transparency requirements, such as regular financial reporting and disclosure of material information, fosters trust and confidence in the company’s operations.
Share Transferability
One of the key benefits of public limited registration is the ease of share transferability. Shareholders can freely buy and sell shares in the open market, providing liquidity to investors and enabling them to adjust their investment portfolios as needed.
This liquidity feature makes shares of public limited companies more attractive to investors compared to private entities with limited or restricted share transferability.
Brand Recognition and Market Presence
Public limited companies often enjoy higher brand recognition and market presence due to their public status. This visibility can lead to increased customer trust, better supplier relationships, and more favorable terms in business negotiations.
Additionally, being listed on stock exchanges can enhance the company’s reputation and attract media attention, further strengthening its market position.
Eligibility For Public Limited Company Registration
Process for Public Limited Company Registration
Step 1
Name Approval and Documentation Preparation
Begin by applying for name approval with the Registrar of Companies (ROC) and prepare the necessary documents, including the Memorandum of Association (MOA) and Articles of Association (AOA).
Step 2
Submission and Verification
Submit the MOA, AOA, and other required documents such as Form INC-32, INC-33, and INC-34 to the ROC for verification. Pay the applicable stamp duty for the MOA and AOA.
Step 3
Incorporation and Certification
Once the ROC verifies the documents and ensures compliance, they issue a Certificate of Incorporation. This certificate signifies the legal formation of the public limited company.
Step 4
Tax and Regulatory Compliance
Apply for Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) with the Income Tax Department. Also, fulfill other legal requirements such as GST registration and compliance with SEBI regulations if planning to list on a stock exchange.
Step 5
Post-Incorporation Formalities and Ongoing Compliance
Conduct the first board meeting, issue share certificates, and open a bank account for the company. Ensure compliance with annual reporting, and audit requirements, and hold annual general meetings as per regulatory guidelines.
Documents Required for Public Limited Company Registration
For Proprietor
For Address Proof
Additional Requirements For Foreign Nationals
FAQs
Can I register a public limited company online in India?
Yes, the registration process for a public limited company can be done online through the Ministry of Corporate Affairs (MCA) portal.
What are the eligibility criteria for becoming a director in a public limited company?
Any individual who is at least 18 years old and not disqualified under the Companies Act, 2013, can become a director of a public limited company in India.
Can foreign nationals or non-residents be directors or shareholders in a public limited company?
Yes, foreign nationals and non-residents can be directors and shareholders in a public limited company subject to compliance with Foreign Direct Investment (FDI) regulations and other applicable laws.
Is there a minimum capital requirement for registering a public limited company?
Yes, a public limited company must have a minimum authorized and paid-up share capital as per the Companies Act, 2013. However, there is no fixed minimum capital amount prescribed.
What documents are required for the registration of a public limited company?
Documents such as identity proofs, address proofs, Memorandum of Association (MOA), Articles of Association (AOA), director’s consent forms, and address proofs of registered offices are needed for registration.
How long does it take to complete the registration process for a public limited company?
The registration process typically takes around 15-30 days, depending on the timely submission of documents and approvals from regulatory authorities.
Is it necessary to have a physical office space for registering a public limited company?
Yes, a public limited company must have a registered office in India where official communication and records can be maintained.
What are the annual compliance requirements for a public limited company after registration?
Annual compliance includes holding board meetings, filing annual financial statements, conducting audits, and adhering to tax and regulatory filings as per the Companies Act, 2013.
Can the name of a public limited company be changed after registration?
Yes, the name of a public limited company can be changed after registration by following the prescribed procedure and obtaining approval from the ROC.
Does a public limited company require a company secretary?
Yes, according to the Companies Act, 2013, a public limited company with a paid-up share capital exceeding a certain threshold is required to appoint a whole-time company secretary.