Public Limited Company Registration


Public Limited Company Registration

A public limited company is the standard legal designation of a company which has offered shares to the general public and has limited liability. A Public Limited Company's stock can be acquired by anyone and holders are only limited to potentially lose the amount paid for the shares.

How do i start a Public Limited Company?

For registering a Public Limited Company, kindly go through the following steps:

STEP-1: Requirement before registration

Minimum Authorized Capital and Paid-up capital should be Rs. 5,00,000/-. At least three Directors and Seven Members required forming a Public Limited Company.

STEP-2: DSC and DIN

The proposed Director should have a valid DIN (Director Identification Number) allotted by the Ministry of Corporate Affairs. One of the Directors should have a valid Digital Signature Certificate issued by the Certifying Authorities approved by the Ministry of Corporate Affairs.

STEP-3: Registering your Company name

Company Registration in India starts with filing of an application for Company Name. The chosen name for a company should be unique all over India. Usually in a day or two, concerned ROC approves the name if the applied name is not same or closely similar to the name of an existing company and the proposed name is in accordance with the Guidelines for Name Availability issued by the Ministry of Corporate Affairs (MCA). Check with MCA website to find you name availability, click here.

STEP-4: Submission of final documents

On getting the company name approved we need to submit final documents to the RoC. The office ROC will scrutinize the incorporation documents. If the documents are found in order, the Company will be registered and the Certificate of Incorporation will be issued by the Registrar.

The Certificate of Commencement of Business has to be obtained by a Public Company before commencing any commercial activity.

Requirement for formation of Public Company

Minimum 7 Shareholders

A natural person, who is a citizen of India, shall be eligible for registering a Public Limited Limited. All 7 shareholders must provide their Id proof and address proof. They must have pan card.

Minimum 3 Directors

The directors and shareholders can be same person.DIN (Director Identification Number) for all the Directors. DSC (Digital Signature Certificate) for one of the Directors.The minimum share capital for registration of public limited company is 5,00,000.

Name of your Company

Naming your company is the crucial part; a company name has two parts Prefix and a Suffix. Prefix must be unique and different, while Suffix should reflect the business nature of your company. To know your name availability check yourself with Ministry of Corporate Affairs website under company name search.

Registered Office Proof

When registering a company, should have a valid address to proof. If you are in Bangalore and you have proper address proof in Pune, then you can register your company in Pune and start your Business operations from Bangalore. Proper registered office proof is mandatory for registering your company.

DOCUMENTS REQUIRED FOR THE PROCESS

Scanned Copy of the Following Documents has to be Provided by the Promoters of the Company:

Advantages of Public Limited Company

Separate Legal Entity

A Company is a separate legal person and juristic person under the law. The company on its own can hold properties and is differs from its members and Directors. The Board of Directors of the Company can only authorised to manage the company, but they do not own the company entirely.

Limited Liability

The members and Directors of the Company posses limited liability and hence they will not be liable for the debts of the company. They are responsible and answerable but the personal assets of the members and directors are not involved in writing of debts for the company.

Flexible To Trade

Unlike Private Limited Companies, a Public company has the flexibility of trading its shares in stock exchange and it is one of the greatest advantages for any company. Any company, whose shares has positive market in stock exchange then the company will have a great market value and the share value of the company tends to increase.