What is a Public Limited Company?

As per the Company Act 2013, a Public Limited Company is a company with limited liabilities and offers company shares to the common public. Anyone can buy their stock in a Public Limited Company through an initial public offering or via stock market trades. A Public Limited Company needs a minimum of seven people to start with. It must have a minimum of three directors. The same seven people can act as both directors and shareholders. One of the directors must have to be a resident of India. Capital of the business completely on the business need there is no statutory minimum requirement to start with. However, the minimum subscribed and authorised share capital requirement is Rs. 5 lakhs.

What are the procedures to register a Public Limited Company in India?

Firstly, you need to get the Director Identification Number (DIN) for the proposed directors. Then, obtaining the Digital Signature Certificate for promoters and directors is necessary. After that, one has to file a RUN application to the ROC for company name approval. After getting the name approval, the shareholders need to prepare the Memorandum of Association(MOA) and Articles of Association (AOA) and submit them to the ROC. Then, the company needs to get the company registration and certificate of incorporation. Finally, the company needs to file the commencement of Business Declaration before starting its operation

What are the benefits of Public Limited Companies in India?

Separate legal entity: Public limited company has separate legal entity, i.e., company is considered as independent from all its shareholders and directors. Therefore, sale by shares by existing shareholders, death of any shareholder or director will not affect the continuation of the company. Limited liability : In a public limited company, every shareholder’s liability is limited to share capital subscribed by a shareholder irrespective of total liability of the company. Preference while getting a loan: Considering the involvement of public at large, compliance and transparency is very high in public limited company. It increases credibility of the company and companies have easy access to loans. Quick transfer of share : In a public limited company, you can obtain shares either at the time of IPO (Initial Public Offer) or through share market. This form facilitates quick transfer of shares.

What are the documents required for Public Limited Company Registration?

Documents of Company: Proof of Address: Copy of utility bills such as electricity, not earlier than 2 months. In case of rented premises, Copy of rent agreement alongwith No Objection Certificate from landlord. Documents of Directors: Digital Signature: Passport size photograph, copy of PAN Card and Aadhar Card, email id and Phone number. Identity proof: Voter’s ID Card, Passport, Driving Licence, PAN (Any one) Address Proof : Copy of Bank statement, Electricity Bill, Telephone bills, not earlier than 2 months. In case of rented premises, Copy of rent agreement alongwith No Objection Certificate from landlord.

Salient Features of Public Limited Company?

There are several advantages the Public Companies get. Here are the following: Larger Capital: As the company structure permits listing of share at stock exchanges, anyone can invest in a Public Limited Company. Hence, it ensures more capital in Public Limited Companies. Amount of Risks get Spread: Since the share of the company is distributed in public, the unsystematic market risk gets spread. Hence the liability is limited. Free Transfer of Shares: The Public Limited Company shares are freely transferable. One can transfer his/her share in a Public Limited Company, even without the prior consent of other shareholders. Larger Borrowing Power: Public Limited Companies have the most significant leverage when it comes to availing financial assistance or borrowing from banks. Apart from that, Public Limited Companies have certain financial instruments usually which are unavailable to other forms of businesses. Perpetual Existence: No matter if any of the shareholders or directors dies, the existence of Public Limited Companies will never be affected. Ability to own properties: Public Limited Companies have separate legal entities from its shareholders and directors Therefore, it can obtain property (Movable or Immovable) in its own name. They can buy and sell properties just like an individual.

How can VJM & Associates LLP help you in starting a Public Limited Company in India?

Starting from planning till the date of execution VJM & Associates can help you with everything you need to register your Public Limited Company. To be precise, here is what we can do for you. Getting the Digital Signature Certificate for the directors and shareholders Help you to obtain the Director Identification Number Name search and approval Preparing MoA and AoA Registration with ROC Obtaining the Company PAN card, TAN Card GST Registration of Company MSME, ESIC & EPF Registration, if applicable

Step 1: Identification of Shareholders (Minimum 7) and Directors (Minimum 3)

Very first step to form a public Limited company is identification of minimum shareholders who will become subscribers of Memorandum of Association (“MoA”) and Article of Association (“AoA”) and minimum number of directors. Shareholders can be individual, firm or Company. However, only an individual can be appointed as director of the company.

Step 2: Obtain Digital Signature Certificate

Digital signature certificate of the personnel is needed in Private Company Incorporation in India. The digital signature certificate is required for filling of e-forms online on the portal of MCA (the Ministry provided portal for online registration). Digital Signature Certificate is issued by the Certifying Authority in token form. It is valid for 1 or 2 years. List of documents required for digital signature certificate: Passport size photograph of the applicant or applicants Self-attested Address proof of the applicant or applicants Self-attested PAN card of the applicant or applicants

Step 3: Obtaining Director Identification Number (DIN)

Director Identification Number or DIN is a unique identification number given by the Ministry of Corporate Affairs to the individual or in duals applying for the allotment of DIN. The number is assigned for a lifetime by the Ministry unless the holder or holders surrender or withdraw it. The director or directors of a company shall receive and intimate the DIN during the time of Private Ltd company incorporation. Getting DIN is mandatory for getting an appointment as Director in any Company. The director or directors can use the DIN number for other company formation. He/she/they can get an appointment as Designated Partner in the LLP. List of documents required for digital signature certificate : Passport size photograph of the applicant or applicants Self-attested address proof of the applicant or applicants Self-attested PAN card of the applicant or applicants

Step 4: Reservation of Name

The Fourth step you need to go for is to reserve the name of the Company. Name of the company should not be similar to the name already registered and must not contain any such word which is prohibited by the Companies Act, 2013. Name can be applied either by filing form RUN (Reserve Unique Name) or by filing SPICe. In the case of Public Limited Company, word “Limited” will be used at the end of the name of the company. Once a name gets the approval, it remains valid for a period of 20 days. Given below are conditions imposed on it The name chosen for a new company registration should not be similar or identical to any registered company or trademark. The name should not be one objected or prohibited under the Emblems and names Act, 1950'. The name of the company must include the suffix Public Limited Company or Limited company When the application for the company name or names are submitted, the registrar review, tally and approve one of the names requested by you. The process usually takes 3 to 5 working days to get approval.

Step 5: Filing for Incorporation of Public Limited Company

Upon allotment of Director Identification Number, Companies need to prepare a Memorandum of Association (MoA) along with an Article of Association (AoA) and submit it to the ROC along with some other documents to get the certificate of incorporation. A minimum of seven shareholders and 3 directors are required to register a Public Limited Company. : Articles of Association (AOA) Affidavits of the Directors Declaration from Directors Memorandum of Association (MOA) The applicant or applicants must submit the relevant information regarding this to the registered office within 15 days of registration or during filing of incorporation documents.

Step 6: Getting the Certificate of Incorporation for Public limited Company

After the successful submission of MoA and AoA and other essential documents, the ROC scrutinizes all of them. If they find that the documents are in the right order, the ROC issues the Certificate of Incorporation. This Certificate is received over mail in digital form digitally signed by RoC.

Step 7: File declaration of Commencement of Business for Public limited Company

A public limited company is needed to file a declaration that all subscribers of Memorandum of Association have already paid subscribed share capital. Declaration is need to be filed within 180 days from date of incorporation.