What is Public Limited Company ?

As per Companies Act, 2013 ('Act') regulates the establishment and working of a public limited company. A public limited company offers shares to the general public and has limited liability. It can be listed on the stock exchange or it can be privately owned.

Public companies are subject to increased financial regulation, disclosure and reporting requirements compared to private companies.

However, creating a public limited company is preferable because it offers the benefits of a private limited company with features like simple transferability and share of ownership, separate legal body, Limited Liability etc.

Benefits

  • Limited Liability: The liability of shareholders is limited to the amount unpaid on their shares.
  • Separate Legal Entity: The Company has its own legal identity, separate from its shareholders.
  • Share Transferability: Shares can be easily transferred, allowing for greater liquidity and capital raising.
  • Increased Credibility: Often seen as more credible by investors, lenders, and the public.

Process

01

Complete the application form for public limited company registration.

02

Apply for DSC and DIN.

03

Verify the company name.

04

Submit the SPICe form for incorporation.

05

Submit the required documents.

06

Obtain the Certificate of Incorporation from the Registrar of Companies (ROC).

Documents Required

Director Identification Number (DIN)
  • Photographs
  • Identity Proof: PAN card (mandatory for Indian nationals)
  • Address Proof: Passport, voter ID, driving license, or Aadhar card
Digital Signature Certificate (DSC)
Memorandum of Association (MOA)
Articles of Association (AOA)
Proof of Registered Office Address
  • Utility bill (electricity, water, gas, or telephone) not older than 2 months
  • Rental agreement, if applicable
  • NOC from the owner of the premises
Identity and Address Proof of Subscribers and Director
Additional Documents
  • Prospectus (in case of inviting public subscription)
  • Statutory declaration in form INC-8 or INC-9
Additional Compliance and Requirements
  • Minimum Directors and Shareholders : A Public Limited Company must have at least three directors and seven shareholders.
  • Prospectus : Issuing a prospectus to the public is mandatory before raising funds.
  • Statutory Meetings : Holding statutory meetings and maintaining transparency through public disclosures.

Our Support?

  • Guidance on Legal Requirements : Ensuring compliance with all legal stipulations as per the Companies Act, 2013.
  • Document Preparation : Assisting with the preparation and submission of necessary documents.
  • DSC and DIN Application : Helping in obtaining Digital Signature Certificates and Director Identification Numbers.
  • Name Approval : Assisting in the verification and approval of the company name.
  • Form Submission : Handling the submission of the SPICe form and other required documents.
  • Obtaining Certificate of Incorporation : Ensuring the successful registration of your company by obtaining the Certificate of Incorporation.
  • Ongoing Compliance : Providing support for ongoing compliance requirements, including statutory meetings and public disclosures.

Frequently Asked Questions

  • Minimum of 7 shareholders.
  • Minimum of 3 directors.
  • Directors must have a Director Identification Number (DIN).
  • A Digital Signature Certificate (DSC) is required for filing electronic documents.

The registration process typically takes around 15-20 working days, depending on the completeness of the documentation and the processing time by the Registrar of Companies (ROC).

Choosing a Public Limited Company is beneficial if you plan to raise capital from the public, enhance the company’s credibility, and enjoy the advantages of limited liability, share transferability, and a separate legal entity.