Public Limited Company Registration – An Overview

Public Limited Company registration is a mandatory online process under the Companies Act, 2013. Applications can be filed through the Ministry of Corporate Affairs (MCA) portal.

What is a Public Limited Company?

The incorporation and operations of a Public Limited Company are regulated by the Companies Act, 2013. Ownership lies with investors who fund the business by purchasing shares publicly traded on stock exchanges. Even the general public can acquire these shares through Initial Public Offerings (IPO) or secondary market trades. The liability of stakeholders is limited to their investment.

Requirements for Registering a Public Limited Company in India

Public Limited Companies offer added prestige and come with specific mandatory registration requirements. Below are the key criteria:

1.      Minimum Shareholders: At least 7 shareholders are required.

2.      Minimum Directors: A minimum of 3 directors is mandatory.

3.      Capital Requirements: No minimum paid-up capital is required, but the authorized share capital must be at least INR 1 lakh.

4.      Proofs and Certificates :

• Self-attested identity and address proofs for directors.
• Digital Signature Certificate (DSC) for one director.
• Director Identification Number (DIN) for all directors.

5.      Documentation: Submission of MOA, AOA, and forms like DIR-12, INC-7, and INC-22.

6.      Name Approval: Selection of a company name with approval from the MCA.

7.      Registration Fees: Payment as stipulated by the Registrar of Companies (ROC).

8.      Business Commencement Certificate: Required after registration to begin operations.

Features of a Public Limited Company in India

Public Limited Companies are among the most popular business structures due to the following features:

1.      Directors: Requires a minimum of three and a maximum of fifteen directors.

2.      Limited Liability: Shareholders’ liability is restricted to their shareholdings

3.      Share Capital: While no minimum paid-up capital is required, the authorized share capital must be INR 1 lakh.

4.      Prospectus: Mandatory to publish a business prospectus.

5.      Naming: The term “Limited” must be added at the end of the company name.

Registration Procedure

The step-by-step process to register a Public Limited Company in India is outlined below:

1.      Fulfillment of Basic Requirements: Ensure compliance with minimum share capital, shareholders, and directors.

2.      Obtain DSC and DIN: All directors must have a DIN, and at least one must have a DSC

3.      Register Official Address: Provide a registered office address to the ROC.

4.      Company Name Approval: Submit preferred names to the MCA using the RUN form.

5.      Prepare MOA and AOA: Draft and obtain the Memorandum of Association and Articles of Association.

6.      Submit Documents: Submit required documents to the ROC for validation.

7.      Certificate of Incorporation (COI):  Upon approval, the ROC issues the COI and Corporate Identification Number (CIN)..

8.      Business Commencement Certificate: Apply within 180 days of obtaining the COI to validate the subscription of shares.

Advantages of Public Limited Company Registration

Fastzeal helps business enthusiasts explore the benefits of registering a Public Limited Company:

1.      Limited Liability: Protects personal assets from business liabilities.

2.      Separate Legal Entity: Operates independently of its owners, reducing personal liability.

3.     Capital Raising: Easily raises funds by offering shares to the public.

4.      Credibility: Public listing enhances the company’s trustworthiness.

5.      Share Transferability: Shares can be freely traded, providing liquidity to shareholders.

6.      Growth Opportunities: Access to larger funds facilitates business expansion and diversification.

Documents Required for Registration

Here’s a checklist of documents necessary for Public Limited Company registration:

1. 1.      Identity Proof: PAN cards and passports for Indian and international directors.

   2.      Address Proof: Utility bills or rental agreements for the registered office.

   3.     DIN and DSC: Director Identification Number and Digital Signature Certificate.

   4.      Credibility: Public listing enhances the company’s trustworthiness.

   5.      MOA and AOA: Key documents outlining company goals and management policies.

   6.      NOC: No Objection Certificate from the property owner, if applicable.

   7.      Shareholding Pattern: Allocation of shares among shareholders.

Mandatory Compliances

Compliance requirements differ for unlisted and listed Public Limited Companies:

Unlisted Public Limited Companies:

1. 1.     Board Meetings: At least four meetings annually.

   2.      Auditor Appointment: Within 30 days of the Board meeting or start of the financial year.

   3.     Returns: Filing of deposits and other financial disclosures with the ROC.

   4.      Key Appointments: Appointment of CFO, CS, or CEO within prescribed timelines.

   5.      Annual General Meeting (AGM): Mandatory for dividend declaration.

   6.    CSR Committee: Hold four meetings annually to plan CSR activities.

   7.      Director Disclosures: Filing financial interests in the company.

Listed Companies:

1. 1.      AGM: Mandatory filing of AGM details via Form MGT-15.

   2.      Financial Statements: Filing of financials in Form AOC-4.

   3.     Annual Returns: Submission via Form MGT-7.

   4.      Secretarial Audit: Applicable if the company meets specified thresholds.

Registration Fees

Fastzeal offers cost-effective registration packages ranging from INR 16,599 to INR 24,599, ensuring a smooth and efficient process.

Why Choose Fastzeal?

Fastzeal stands out with its expert team and customer-focused services: