All About Public Limited Company Registration
There are various forms/constitutions of businesses available that one can register with. The main types of them include Sole proprietorship, Private limited, Public limited, Partnership and Limited liability partnership. In this article, we’ll confine our discussion towards Public Limited Company.
Public Limited Company is a creation of law and is incorporated as per the law and provisions laid down in The Companies Act 2013, and the rules made thereunder. The term Public Limited Company is the wider form of Limited company that includes no restriction from the maximum number of shareholders to the transfer of shares which cannot be done by a Private Limited Company. It raises its fund through public and accepts the public deposits. The Board of Directors has the power to govern and manage the Public limited company constituted as per the unanimous consent of the shareholders. However, there is a much more compliance burden on the Public limited company than Private Limited Company.
Eligibility For Public Limited Company Registration
➤ A Public Limited Company must have a minimum of three Directors and seven shareholders
➤ At least one director of the company must be resident in India. A person is said to be resident if he or she stays in India for at least 182 days during the preceding financial year irrespective of their citizenship.
➤ A minimum share capital of Rs.5 lakh is required.
➤ DIN for all Directors
Public Limited Company Registration Benefits
➤ It has a separate legal entity. It owns the name, acts under the name and has a seal of its own and its assets are separate and distinct for those of its members.
➤ More preference is given to public limited companies in giving loans by banking and financial institutions.
➤ Unlike private limited companies, there is no restriction on the public limited company related to the maximum number of members.
➤ A business of the Company will not affect if there is any change in the ownership of the company. Hence it has Perpetual Succession.
➤ By following compliance, a public limited company can list its shares on stock exchange.
➤ Shares of a company limited by shares are transferable by a shareholder to any other person. Filing and signing a share transfer form and handing over the buyer of the shares along with share certificate can easily transfer shares
➤ It limits the liabilities of its partners.
For Identity Proof of proposed directors
- Pan Card/ Passport
For Address Proof of proposed directors
- Driving License/Election ID/ Bank Passbook/ Ration Card/ Electricity Bill/ Phone Bill
- Utility Bill and NOC from the owner for the Registered Office address of the Company;
- Rental Agreement with the owner of registered office, (if premises is rented)
- Certified True copy of the self-attested Identity proof of the first subscriber(s) and director(s).
In case any shareholder is a company
- Board resolution authorizing investment in the company
- Incorporation Certificate of the Company
- Address proof of the company
Process of registering a Public Limited Company
DSC, DIN and file Name Approval
The first step of registering a public limited company starts with the preparation of obtaining DSC and DIN. This usually takes one to two days. Thereafter, you need to file for name approval which should have a unique first word of the name and should end with the words “Limited.”
Filing For Incorporation
The next step is to file for incorporation of the company via spice form INC 32. Further, PAN and TAN are not required to be filed separately and the same is allotted on company formation by the IT department which is mentioned on the certificate of incorporation. With the approval of this the Certificate is Issued.
The final step includes Bank account opening and taking necessary registrations.