Public Limited Company Registration in India

A Public Limited Company should be the preferred business choice in India if you plan to raise funds from the general public through Initial Public Offering (“IPO”) because public limited companies have been privileged under Securities Laws to access the capital market.

Why prefer Public Limited Companies?

Public Limited Companies in India are considered a more transparent business model than other business structures. It allows investors to transfer their ownership in the Company without any hassle by just selling the shares.

Public Limited Companies in India are a destination point for Foreign Direct Investment (“FDI”) because, under Foreign Exchange Laws, there are areas open for Public Limited Companies to attract foreign loans and equity participation.

Features of a Public Limited Company India

A Public Limited Company has the following features:

Flexible Structure

A Public Limited Company has the most flexible structure of all Company types. It allows a significant degree of separation between operations and ownership.

Stock Ownership

A Public Company can provide stock ownership or ESOPS to employees. Only Limited Companies are allowed to offer this feature of distributing their stocks among current and prospective employees.

Stock Exchange Listing

Only Public Limited Companies can list their shares on Indian Stock Exchanges such as National Stock Exchange (NSE), Bombay Stock Exchange (BSE), etc. Therefore, the general public can invest in the Company by purchasing its stocks.

Raising Funds through IPOs

Only Public Limited Companies can accept Deposits from the Public under the Companies Act, 2013. This way, the Company can raise more capital for its business operations and size expansion. 

Eligibility Criteria for Public Limited Company Registration in India

Legal Requirements of Public Company India

A business looking to register itself as a Public Limited Company must appoint the following executives before filing the incorporation application:

• A minimum of 3 directors and a maximum of 15 directors.
• At least one Director should be an Indian National.
• A minimum of seven shareholders.
• The minimum authorised share capital of Rs. 1 lakh is required.
• Directors required a Director Identification Number.
• The digital signature Certificate (DSC) is required while submitting the self-attested copies of identity and address proof.
• Documents such as Article of Association (AoA), Memorandum of Association (MoA) and Form DIR-12 are required.

Documents required for Public Limited Company Registration in India

In regard to the Public Limited Company registration, the following documents are needed:

Directors and Shareholders

• Copy of PAN Card
• Identity Proof:
  • Voter Card
  • Passport
  • Driving Licence
• Address Proof:
  • Bank Statement
  • Mobile Bill
  • Telephone Bill
  • Electricity Bill
• Recent Passport Size Photo

Registered Office

• Ownership Proof:
  • Electricity Bill
  • Gas Bill
  • Electricity Bill
  • Mobile Bill
• NOC (No-Objection Certificate) for Rented Property

Process for Public Limited Company Registration in India

The procedure for Public Limited company registration in India is as follows:

Step 1: Choosing a unique name for the Company

You must choose a unique name for your public limited company. Make sure the name you’ve chosen doesn’t already exist. For this, you can use our company search tool.

Step 2: Reserving the name of the Public Limited company using the RUN application

After choosing your company name, you must get it reserved by filing the Reserve Unique Name (RUN) application with the Ministry of Corporate Affairs (MCA). If the name is approved, the reservation will stay valid for 20 days from the date of the approval. 

Step 3: Obtaining the DSC and DIN of the directors of the Company

For incorporation of a public limited company, you must obtain a Digital Signature Certificate (DSC) beforehand as it’ll be required to sign incorporation documents. Additionally, you will also need to obtain a Director Identification Number (DIN) for company directors. For DIN, you need to file form DIR-3 with MCA. For obtaining DSC, you can visit the website of a licensed Certifying Authority (CA) in India and apply there.

Step 4: Drafting MOA and AOA of the Company

Legal documents known as the Memorandum of Association (MOA) and Articles of Association (AOA) specify the goals, internal administration, and organizational structure of a public limited company India. They guarantee the legal and effective operation of a public company and are necessary for public ltd company registration. When drafting a company's articles of association (AOA) and memorandum of association (MOA), you should incorporate all the necessary clauses and take into account all legal requirements. DSC should be used to sign MoA and AoA.

Step 5: Submitting the online application for Public Limited company incorporation

The SPICe+ stands for Simplified Proforma for Incorporating Company electronically Plus. This web form is a single application to incorporate a company and obtain other MCA services. It is crucial to file the company incorporation form SPICe with all required attachments as this step is necessary for incorporation of a new company.

Step 6: Assessment of the application by the Ministry of Corporate Affairs

The company registration application along with submitted documents will be assessed by the MCA. If the MCA is satisfied with the application, it will grant your business a certificate of incorporation.

Our Assistance in Public Limited Company Registration in India

We at Registrationwala provide end-to-end solutions for Public Limited Company registration in India. Our services include:

• Company name research
• Obtaining DSC and DIN
• MOA and AOA drafting
• Application filing
• Following up with the Ministry of Corporate Affairs

In order to keep up with these requirements, you need the assistance of business experts. Additionally, the Public Limited company registration process in India is something that only experts like CA or CS should handle. So, what are you waiting for? Connect with us for assistance in incorporation of public limited company India.