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Public Limited Company Registration

What is a Public Limited Company?

A Public Limited Company registration in India is the best suitable business structure for entrepreneurs who are planning for large-scale business operations. To register a Public Limited Company in India there should be a minimum of seven members and there is no limit on the maximum number of members/shareholders for starting a Public Limited Company.

A Public Limited Company in India enjoys all the privileges of a corporate entity together with the features of Limited Liability. A public limited company gets listed with the stock exchange to raise capital from the general public. Hence, the Public Limited Companies have to comply with multiple regulations of the government and start a Public Limited Company.

A Public Limited Company that is registered under the provisions that are prescribed under the Companies Act,2013. The member of a Limited Company registered in India enjoys the features of Limited Liability and this type of entity is also allowed to raise capital from the public by the issuance of shares.

Also, the rules and the regulations of a Public Limited Company are more rigid and strict in comparison to the Private Limited Company. Still, it is better to incorporate a Public Limited Company as it provides the benefits of a Private Limited Company with features such as easy transferability and ownership of shares.

Documents required to Incorporate a Public Limited Company

Which documents are required to start a Public Limited Company in India?

It is very important to submit all the necessary documents about the registration of a Public Limited Company to avoid legal complications:

Passport Sized Photographs Of all the Directors
Copies of the Identity Documents of all the Directors- Aadhar Card, Voter Card, PAN Card.
DSC (Digital Signature Certificate) of all the Directors
DIN (Director Identification Number) of all the Directors.
In case if the office is a rented property - The rent agreement.
In case the office is an owned place- the property ownership documents
The water bill and the electricity bill of the business place.
No objection certificate by Landlord.
Memorandum of Association (MOA)
Articles of Association (AOA)

Procedure for obtaining Public Limited Company registration

What is the procedure for obtaining Public Limited Company Registration?

1

It is necessary to meet all the legal requirements such as Number of Directors, Number of shareholders, minimum paid-up share capital have been fulfilled. The further steps of registration will be completed only if this step is complete.
2

The next step is to obtain the DSC and DIN for the directors of the Company. Only a natural person can be a director not any individual or entities like the LLPs or Financial institutions. It is not necessary for the Director to be the shareholder of the Company.
3

To be recognized as a registered office it is necessary to have a proper address of the Company. The Registered office address has to be registered with the Registrar of Company under whose jurisdiction the office falls. This office address is to be entered correctly as all the correspondence related to business will be made to the registered office address. The registration fee will be dependent on the authorized capital of the company.
4

Before the procedure of registration, the name of the Company has to be approved by the ROC. For a Public Limited Company, the name must end with the word "Limited". This application will be filed in the RUN form of the Ministry of Corporate Affairs. It is better to provide a list of names in the order of preference, in case a particular name is not available.
5

Once the name of the Company has been approved the crucial documents of the Company that is the MoA and the AoA need to be executed.
6

Once the documents are prepared they need to be submitted to the ROC for verification.
7

Once the verification is done the ROC registers the company and issue the incorporation certificate along with the CIN of the Company.
8

The business cannot be started immediately after receiving the COI. The business has to apply for a certificate of commencement within 180 days of the COI stating that all the subscribers have paid the subscription money.

Requirements for registering a Public Limited Company

Some various rules and regulations are prescribed under the Companies Act,2013 for the formation of a Public Limited Company in Inia. Here is a checklist one should know of while registering a Public Limited Company:

Minimum 7 shareholders are required to form a Public Limited Company.
A minimum of 3 Directors is required to form a Public Limited Company.
A minimum share capital of Rs.5 lakh is required.
DSC of one of the Directors is needed when the self-attested identity copies and address proof are submitted.
DIN for the Directors is necessary.
Application is to be made for the selection of the Name of the Company.
An application that comprises the main object clause of the company is made. This object clause will define the main objectives of a Company after the incorporation.
The application is submitted to the ROC along with the necessary documents like MOA, AOA, a duly fille form DIR-12, Form INC 7, and Form INC -22 is needed.
Payment of the registration fees that are prescribed by the ROC.
Once the ROC has approved the company should apply for the business commencement certificate.

Company Name Availability

Companies Act, 2013 does not permit registration of identical or similar names (Know more)

Benefits of registering a Public Limited Company in India

What are the benefits of registering a Public Limited Company?

Here are the advantages of registering as a Public Limited Company:

Separate Legal entity : A public limited Company is considered to be a separate legal entity from the shareholders. The public limited company has a perpetual existence and can have its PAN, bank account, approvals, contracts, licenses, assets, and liabilities.
Multiple avenues of funding : A public limited company raises funds from individuals as well as from financial institutions. The funds may be also raised in equity shareholding, preference shareholding, or debentures.
Easy transferability of shares : It is one of the biggest advantages of a Public Limited Company, the shares can be easily transferred by a shareholder to other legal entities- be it an individual or an organization in India or abroad. The director of the company can also be changed for ensuring the business perpetuity.
Limited Liability : The shareholders of a Public Limited Company are given limited liability protection. In a situation of unexpected liability, the same would be limited only to the company and the not affect the shareholders in any way.
Growth opportunities : As the organization has a vast capital base the development openings are likewise huge, particularly in the event of an open constrained organization.
Management : The organization is controlled by the Board of Directors. This Board of Directors is elected by the investors.

Annual Compliances for a Public Limited Company

Unlisted Company

Board Meetings :
An unlisted Public Limited Company is required to hold at least 4 board meetings in compliance with Section 173 of the Companies Act,2013.
Appointment of a Cost Auditor :
The auditor is required to be appointed as per Section 148(3) along with Rule 6(2) and Rule 6(3A) of the Companies Rules,2014. For this form, CRA 2 is to be filed. It is pertinent to mention that the original appointment of the auditor should be done within 30 days of the Board meeting or 180 days of the financial year, whichever is earlier. When a casual vacancy arises the same is to be filed within 30 days.
Return of Deposits :
Returns of deposits have to be filed with the ROC under whose jurisdiction the company falls via Form DPT 3 in compliance with rule 16 of the Companies (Acceptance of Deposit) Rules,2014.
Appointment of CFO or CS or CEO :
Section 203 read with Rule 8 and Rule 8A of the Companies Rules,2014 requires the appointment of the CFO or CS or CEO within 30 days of the AGM or 6 months in case of the casual vacancy. Form MGT 14 or Form DIR 12 are filed.
Annual General Meeting :
AGM for the declaration of the dividend has to be conducted in compliance with Section 96 of the Companies Act, 2013.
CSR Committee :
CSR Committee has to hold four meetings with a gap of not less than 120 days between the two meetings held for discussion and approval of the CSR activities. This is done under the Companies Act,2013 read with Companies Rule,2014 and Secretarial Standard.
Director’s Disclosure :
Directors are required to disclose any financial interest in the Company via Form MBP 1 in compliance with Section 184(1) of the Companies Act,2013 read with Rule 9(1) of the Companies (Meetings of Board and its Powers) Rules,2014.

Listed Company

Annual General Meeting :
Annual General Meeting has to be held following Section 121(1) of the Companies Act, 2013. Form MGT-15 has to be filed once the AGM has been conducted
Financial Statements :
The Financial Statements of the Company have to file as per Section 137 of the Companies Act,2013, read with Rule 12(2) of the Companies (Accounts) Rule,2014. The Financial statement consists of the balance sheets, cash flows statements, Director's statement, Director's report, Auditor's report, and the combined financial state, meaning which is prepared in XRBL (Extensible business reporting system). This is filed via Form AOC 4
Annual Return :
This has to be filed following Section 92 of the Companies Act.2013 read with the Rule 11(1) of the Companies (Management and Administration) Rules,2014. The Annual return contains the information about the directors and shareholders and is required to be filed in Form MGT7 with the relevant ROC.
Financial and Director’s Report :
Adoption to the financial and director's report is to be done in consonance with Section 173 of the Companies Act read with the Secretarial standard 1. The filing is done via form MGT 14.
Income Tax Returns :
This is to be filed with the Tax department in form ITR 6 on or before September 30th of the financial year
Secretarial Audit Report :
Submission of the Secretarial report is a requirement under Section 204 of the Companies Act,2013 read with Rule 9 of the Companies Rules,2014. The secretarial report has to be submitted only when the Company's total paid-up capital is equal to or crosses Rs. 50 crores or the annual turnover is equal to or exceeds INR 50 crores or the annual turnover is exceeding Rs.250 crores. This filing did via Form MR 3
Other compliances :
These include the rules and regulations that are laid down by SEBI. The listed Companies have to comply with the regulations of 2015.

How much does it cost to set up Public Limited Company in India?

Pay as you go grow pricing

All Inclusive Pricing - No Hidden Fee

Basic

^₹29899

all inclusive fees

Digital Signatures ¹
3 Director Identification Numbers
1 RUN Name Approval ²
Upto 10 Lakhs Authorized Capital ³
Incorporation Fee
Stamp Duty ⁴
Incorporation Certificate
Current Account Opening
PAN & TAN
50+ Document Formats
Incorporation Kit
Hard-copy Share Certificates
GST Registration
LEDGERS Accounting Software ⁶
GST eWay Bill Software

Standard

^₹59899

all inclusive fees

Digital Signatures ¹
3 Director Identification Numbers
1 RUN Name Approval ²
Upto 10 Lakhs Authorized Capital ³
Incorporation Fee
Stamp Duty ⁴
Incorporation Certificate
Current Account Opening
Online Payment Gateway ⁵
PAN & TAN
50+ Document Formats
Incorporation Kit
Hard-copy Share Certificates
GST Registration
LEDGERS Accounting Software ⁶
GST eWay Bill Software
Commencement of Business Certificate
Bookkeeping
Financial Statement Preparation
Annual Report
Director's Report
Board Resolution Preparation
MCA Annual Return Filing
Income Tax Return Filing
1 Year Dedicated Compliance Manager Support

Premium

^₹79899

all inclusive fees

Digital Signatures ¹
3 Director Identification Numbers
1 RUN Name Approval ²
Upto 10 Lakhs Authorized Capital ³
Incorporation Fee
Stamp Duty ⁴
Incorporation Certificate
Current Account Opening
Online Payment Gateway ⁵
PAN & TAN
50+ Document Formats
Incorporation Kit
Hard-copy Share Certificates
GST Registration
LEDGERS Accounting Software ⁶
GST eWay Bill Software
Commencement of Business Certificate
Bookkeeping
Financial Statement Preparation
Annual Report
Director's Report
Board Resolution Preparation
MCA Annual Return Filing
Income Tax Return Filing
1 Year Dedicated Compliance Manager Support
1 Year GST Return Filing (GSTR-3B or GSTR-1)
Udyog Aadhar Registration
Trademark Registration

Digital signatures with 2 year validity on secure USB token.
Upto 4 name options can be given in 1 RUN name approval request.
Authorised capital is the amount of shares a company can issue at anytime and can be increased further in the future. Paid-up capital is the amount invested by shareholder and can be even Rs.2.
In case of Rs.10 lakh authorised capital, stamp duty of Rs.5120 (on actuals) will be chargeable extra for the state of Gujarat. Rs.5510 will be the additional stamp duty charges for state of Rajasthan. In case of incorporation in Madhya Pradesh, an additional stamp duty of Rs.7550 will be applicable. In case of incorporation in Punjab, an additional stamp duty of Rs.15025 will be applicable. In case of Kerala, an additional stamp duty of Rs.3025 will be applicable.
Business Current Account and Payment Gateway powered by ICICI Bank Limited. Subject to terms and conditions of ICICI Bank Limited.
Premium LEDGERS Accounting Software with GST Portal Integration and eWay Bill Software.
Statutory Auditor fee is payable on actuals directly to the Independent Auditor appointed by the Board of Directors. IndiaFilings will only be responsible for accounting, preparation of financial statements and filing of returns on behalf of the Company.

Public Limited Company Bank Account Opening

Open a new or link your existing ICICI bank current account with LEDGERS for seamless bank account reconciliation, account balance check and sending of payments through NEFT / RTGS / IMPS.

Open a new or link your existing DBS bank business account with LEDGERS for seamless bank account reconciliation, account balance check and sending of payments through NEFT / RTGS / IMPS.

Bank Account Opening

Opening a current account for a public limited company is easier when compared to opening of current account for a sole proprietorship firm as a company is a registered legal entity – recognized by law. Therefore, once a company is incorporated, a bank account can be opened in the name of a company with the incorporation certificate of the company and identity/address proof of the Directors.

How many people are required to incorporate a Limited Company?

To incorporate a Limited Company, a minimum of seven people are required. A Limited Company must have a minimum of three Directors and seven shareholders.

What are the requirements to be a Director?

The Director needs to be over 18 years of age and must be a natural person. There are no limitations in terms of citizenship or residency. Therefore, even foreign nationals can be Directors in a Indian Private Limited Company.

What is the capital required to start a Limited Company?

You can start a Limited Company with any amount of capital. However, fee must be paid to the Government for issuing a minimum of shares worth Rs.5 lakhs [Authorized Capital Fee] during the incorporation of the Company. There is no requirement to show proof of capital invested during the incorporation process.

Is an office required for starting a Limited Company?

An address in India where the registered office of the Company will be situated is required. The premises can be a commercial / industrial / residential where communication from the MCA will be received.

Do I have to be present in person to incorporate a Limited Company?

No, you will not have to be present at our office or appear at any office for the incorporation of a Limited Company. All the documents can be scanned and sent through email to our office. Some documents will also have to be couriered to our office.

What are the documents required for incorporation?

Identity proof and address proof is mandatory for all the proposed Directors of the Company. PAN Card is mandatory for Indian Nationals. In addition, the landlord of the registered office premises must provide a No Objection Certificate for having the registered office in his/her premises and must submit his/her identity proof and address proof.

How long will it take to incorporate a Company?

IndiaFilings.com can incorporate a Limited Company for in 14-20 days. The time taken for incorporation will depend on submission of relevant documents by the client and speed of Government Approvals. To ensure speedy incorporation, please choose a unique name for your Company and ensure you have all the required documents prior to starting the incorporation process.

How long is the incorporation of the Company valid for?

Once a Company is incorporated, it will be active and in-existence as long as the annual compliances are met with regularly. In case, annual compliances are not complied with, the Company will become a Dormant Company and maybe struck off from the register after a period of time. A struck-off Company can be revived for a period of upto 20 years.

What is Director Identification Number (DIN)?

Director Identification Number is a unique identification number assigned to all existing and proposed Directors of a Company. It is mandatory for all present or proposed Directors to have a Director Identification Number. Director Identification Number never expires and a person can have only one Director Identification Number.

What is authorized capital fee?

Authorized capital of a Company is the amount of shares a company can issue to it shareholders. Companies have to pay the Government an authorized capital fee to issue shares in a Company. Companies have to pay authorized capital fee for a minimum of Rs.5 lakhs.

What are the statutory compliances required for a Limited Company?

A limited company must hold a Board Meeting atleast once in every 3 months. In addition to the Board Meetings, an Annual General Meeting must be conducted by the Private Limited Company, atleast once every year.

Can NRIs / Foreign Nationals be a Director in a Limited Company?

Yes, a NRI or Foreign National can be a Director in a Limited Company after obtaining Director Identification Number. However, atleast one Director on the Board of Directors must be a Resident India.

Can NRIs / Foreigners hold shares of a Limited Company?

Yes, NRIs / Foreign Nationals / Foreign Companies can hold shares of a Limited Company subject to Foreign Direct Investment (FDI) Guidelines.

What are FDI Guidelines for Foreigners in a Limited Company?

100% Foreign Direct Investment is allowed in India in many of the industries under the Automatic Route. Under the Automatic Route, only a post-investment filing is necessary with the RBI indicating the nature of investment made. There are a few industries that require prior approval from the RBI, in such cases, approval must first be obtained from RBI prior to investment.

What is the difference between a public and a private limited company?

A Public Limited Company is a Company that is listed on the recognized stock exchange and the securities of a Public Limited Company are Traded publicly. A Private Limited Company is not listed on the stock exchange and the securities are held by the members privately.

What are the types of Public Limited Companies?

Private Limited Company is of three types:

A company that is limited by the shares
A company that is limited by guarantee.
Unlimited Company

What are the advantages and disadvantages of a Public Limited Company?

There are several advantages of incorporation like they offer Limited Liability protection, transferability, borrowing capacity, and others. Whereas the disadvantages of a Public Limited Company are such that a Public Limited Company is difficult to form, there are a lot of legal formalities, lack of secrecy, and a lot of regulatory requirements.