Public Limited Company is registered and regulated under the Companies Act 2013. Members of such companies have limited liability up to their shareholding. Public companies have the advantage over the private company in terms they are allowed to offer shares to the public either through the trading of its shares on a recognized stock exchange or by the issue of shares to the public through IPO and FPO. In this blog, we will learn about the criteria for Online Public Limited Company Registration in India.
Criteria for Public Limited Company Registration in India
Following are the basic requirement for registering of Public Limited Company:
- Company shall be registered with a minimum capital of INR 5 Lakhs
- At the time of incorporation, minimum 7 members must subscribe to the memorandum
- Public Company shall be registered with minimum 3 directors, and there is no limitation on the terms of residency of directors
- The act mandates it to issue the Prospectus to the public since it is a comprehensive document stating the affairs of the company
- Every public company shall have the words “Limited” at the end of their name
- The liability of the members of a public company is limited to the extent of shares held. Thus shareholders are not personally liable for debts of the company
Process for Registration of Public Limited Company
Steps by step process to register the public limited company in India:
- Apply the name for reservation through filing RUN up to two names with the word “Limited” at the end.
- Upon the receipt of the name approval letter, the applicant shall file the company registration application within 20 days of the receipt of the name approval letter
- Arrange the DSC of all subscribers and directors for affixing e-form
- Download the three linked forms such as SPICe, SPICe MOA and SPICe AOA for company incorporation which are available for downloading from MCA
- Complete all the forms with necessary details and by attaching the necessary documents as an attachment to the forms:
- Identity proof of all directors and subscribers
- Address proof of all directors and subscribers
- Self-certified copy of PAN of all directors and shareholders
- Any utility bill such as electricity bill/gas bill/water bill or registry in case of registered address is owned
- NOC from landlord and rent agreement if the premise of the registered office is rented
- MOA consisting of main and ancillary objects of the proposed company
- AOA consisting of by-laws of the company
- DIR-2 of all directors for their consent to act as a director in the proposed company
Advantages of Public Limited Company
Following are the benefits of registering Public Limited in India:
- Shares of a public company are freely transferable without any restrictions
- Member's liability is limited to the extent of the face value of shares held
- A public company can raise a huge amount of fund from public
Summary
Public Company is allowed to raise the fund from the public through issue of share stop public at large, and also their shares can float on a stock exchange which makes this company suitable for the business conducted on a large scale. Contact us to get the hustle-free registration certificate and its compliances related consultancy services in just minimal cost.
