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Public Limited Company Registration

A public limited company delights its shareholders with the benefits of limited liabilities and gives them the right to sell their shares to raise funds. Any interested investor can invest in the shares of a public limited company.

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Overview of Public Limited Company

A public limited liability company allows limited liability to its proprietors and to its management team. However, in the case of a public limited company, a firm can sell shares to investors, which is considered a beneficial act in raising capital for the business. To establish a Public Limited Company, a minimum of three Directors is required, and there is no cap on the maximum number of members. Importantly, it has more strict regulatory requirements than a private limited company.

A Public Limited Company is a different type of company but holds most of the characteristics of a private limited company. It enjoys more benefits, such as ease of transferability, borrowing capacity, limited liability, and perpetual existence. Like any other company in India, Public Limited liability is also registered according to the rules and regulations of the Companies Act 2013.

A public company appreciates the benefits of constrained liabilities for its individuals and has the right to offer its offers to raise the capital of the company. It can be joined with the least number of three chiefs and has more rigid rules and directions than a Pvt. Ltd. Company. It must have the least number of seven individuals, while there's no constraint for the greatest number of individuals. It gives all the benefits of a private restricted company in conjunction with more straightforwardness and simple transferability of possession and shareholding. Title, offers, arrangement, number of individuals, administration and chiefs, etc., separate any Open restricted company from the privately restricted companies.

Advantages of Public Limited Company

Business Type For Investors: Investors and other parties prefer public limited companies to invest their money as they are well structured and have a transparent business structure. If anyone wants to raise capital for their business and sell the ownership in the business, this type of company is what they should consider.
Most Suitable Business For Heavy Investment: Public Ltd is the company with the best business structure for heavy investment.
Easy To Raise Funds And Loans: A public limited company is like a person as it can list itself in various stock exchange markets in India and raise capital from the stock market and from interested investors. It also enjoys wide options to raise minimum paid up capital for public company, bank loans and Institutional investors.
Uninterrupted Existence: A Public Limited Company has ‘perpetual succession’, which means it has uninterrupted existence until it gets legally dissolved. Being a separate legal person, a company is unaffected by the departure or death of any member, it continues to be in existence regardless of the changes in the membership of the company.
Easy Transfer Of Shares: Importantly, it is very easy to way out from a public company limited by guarantee, as only shares of the company have to be handed over to the investor or purchaser along with share transfer forms.
Owning Property: A Public Limited Company is a juristic person; it can own, acquire, enjoy and estrange properties in its own name. There is no right for the shareholder to make any claim upon the property in the company's name so long as the public limited company is a going concern.

Checklist for Registering a Public Limited Company in India

As per the Companies Act 2013, any public limited company ownership to be registered in India must meet the conditions mentioned below.

To form a public limited company, a minimum of seven members is needed.
There is no self-command on a maximum number of members.
At least one of the directors must be an Indian Territory Resident.
A minimum paid-up capital of around Rs 5 lakhs is required.
The shares assigned to the members are munificently transferable.
Public Limited Companies can raise funds or investments from the general public through open requests and invitations by selling the company’s shares and accepting funds or fixed deposits.
The name of the public limited company should not bear any similarity or should not match to any name of the company or trademark that already exists. The company name should be unique anyway.
These types of companies are required to keep either public limited' or private limited' after their company names.

What is the difference between a Private Limited Company and a Public Limited Company?

There are various points of difference between these companies. Here are some chief differences between both:

Differences	Private Limited Company	Public Limited Company
Members	Minimum: 2 Maximum: 200	Minimum: 7 Maximum: No Limit
Directors	Minimum: 2	Minimum: 3
Public Invitations	No	Yes
Minimum Capital Income	No	No
Issuance Of Prospectus	Not Required	Required
Name Differences	Must have PVT LTD at the end of its name	Must have “Limited” at the end of its name
Mandatory Statutory Meeting	No	Yes
Managerial Remunerations	Cannot exceed the limit of 11/% of the net profit	There are no such restrictions
Stock Exchange	Not listed on the stock exchange, nor carry out stock trade publicly.	It is listed on the stock exchange, and the stock trade is carried out publicly.

Documents Needed for Public Limited Company Registration in India

Documents needed for Directors and Shareholders
PAN Card
Foreign Nationals nationality proof.
Passport for Foreign Nationals
Identity proof such as Passport, Driving License, Voter ID and so on,
Directors and Shareholders Address proof
2 Passport size photos
The applicant can provide the electricity bill, phone bill, electricity bill or bank statement, and importantly, none of the above-mentioned documents should be older than two months.

Rent Agreement or Conveyance attached with rent receipts.
Latest Utility bills
NOC provided by Landlord
DSC

Note: Documents linked with the Foreign Director are as follows:

Notarized (if the company director has a nationality of any commonwealth country)
Notarized & Apostille (if the director residing in a country signed to the Hague convention)
Notarized & Consularised (If the director does not represent the above-mentioned categories)

Public Limited Company Registration Procedure

Applying for Company Name Reservation
Applying for Digital Signature Certificate (DSC) of the Director
Obtaining Director Identification Number (DIN)
Getting approval from other authorities
Submitting the needed documents to the Registrar of Companies (ROC)
Drafting of MoA, AoA & other required documents and Filing of the EMOA and EAOA to register a public limited company
A minimum of seven directors are required for incorporation into a public limited company.
Applying for PAN & TAN of the company simultaneously along with company registration forms
Receiving the Certificate of Incorporation of public limited company. After receiving the certificate of Incorporation the public limited company is set to start its function.
Opening a Bank Account in the name of the company is required for the smooth functioning of the company.

Frequently Asked Questions

What is DSC? +

The application for Digital Signature Certificate (DSC) for such companies is filed through the online portal, and the shareholders and directors of the company should sign it. The issuing of DSC needs some mandatory documents like address proof, identity proof associated with some photographs.

How to choose the unique name for the company? +

The first and foremost step in obtaining Public Limited Company Registration is to reserve and get approved the name of the company. The proposed or reserved name should not hold any word which is prohibited as per the Companies Act, 2013.

What is DIN? +

DIN is a short form of Director Identification Number, and it is issued by Registration of the Companies ROC, which permits the director to work in the company.

Can I change the registered address of the company after I shift a commercial space ? +

Yes, I can. It is a very easy process, and if the new address is inside the same city, the process of changing the address can be made within hours.

How many days are needed for the Registration process of a public Limited Company? +

Generally, it takes 8-15 working days for a company to register. Moreover, it is a legal process and fixing a timeline is not practical; Start-ups are advised to plan the registration process in advance before the launch date of their company.

What is the minimum capital required for a public limited company? +

A public limited company needs a minimum capital of Rs. 5, 00,000. The director or shareholder must deposit this amount in the bank account of the public Limited Company in the determined share percentage. Then, the company can utilize the same deposit amount for its further operations.

What is the cogency of the Public Limited Company Registration? +

The registration of the Public Limited Company is valid throughout the life of the company.

What are AOA and MOA? +

MOA is a short form of Memorandum of Association and it defines the business object, mission and vision of the company before its incorporation while AOA is a short form of Article of Association. It represents the internal constitution of the company.