Updated on October 31, 2022 05:36:07 PM
A Public Limited Company has the benefits of limited liabilities and it can sell its shares to the general public for raising capital. It is suitable for large businesses that require huge capital and registered under Companies Act, 2013. Public limited companies can list themselves in the stock market and offer shares to the general public in the form of Initial Public Offerings (IPO). Get to know the benefits, process and requirements of Public Limited Company registration.
Public Ltd. Company - Incorporation Certificate [Sample]
A Public Limited Company is a type business entity which has limited liability features and offers shares to the general public for raising equity capital. It is governed by Companies Act, 2013 and registered under the Ministry of Corporate Affairs. It can be incorporated with a minimum number of seven members and at least three members must be the directors of the company.
It helps in protecting personal assets of the owners with limited liability protection. So if there are any financial issues with the company, the assets of the director are secured and could not be seized by banks or departments.
A public limited company is a separate legal entity in its own right and hence the business owners aren’t subject to any personal liability. The company can acquire assets and incur debts on its own name.
Public Limited Company can raise funds by offering shares to the general public and hence it can raise more capital easily.
As listed on the stock market, a public limited company has higher credibility than other limited companies.
Unlike Private Limited Company where the shares can only be transferred with the consent of other members of the company, a public limited company can easily transfer the shares freely.
Minimum of seven members are required
Minimum of 5 lakh rupees is required for share capital
At least three members must be the directors of the company
Public Limited Company registration is a complete digital process and therefore requirement of Digital Signature Certificate is a mandatory criteria. Directors as well as subscribers to the memorandum of the company need to apply for a DSC from the certified agencies. Obtaining a DSC is a complete online process and it can be done within 24 hours. This process involves 3 simple verifications that are document verification, video verification and phone verification.
Name application for Public Limited Company can be done through SPICe RUN form which is a part of SPICe+ form. While making the name application of the company, industrial activity code as well as object clause of the company has to be defined.
Note: It should be ensured that business name does not resemble the name of any other already registered company and also does not violate the provisions of emblems and names (Prevention of Improper Use Act, 1950). You can easily check the name availability by using our company name search tool to verify the same.
Post name approval, details with respect to registration of the company has to be drafted in the SPICe+ form. It is a simplified proforma for incorporating a company electronically. The details in the form are as follows:
SPICe e-MoA and e-AoA are the linked forms which have to be drafted at the time of application for company registration.
Memorandum of Association (MOA) is defined under section 2(56) of the Companies Act 2013. It is the foundation on which the company is built. It defines the constitution, powers and objects of the company.
The Articles of Association (AOA) is defined under section 2(5) of the Companies Act. It details all the rules and regulations relating to the management of the company.
Post approval of the above mentioned documents from the Ministry of Corporate Affairs; PAN, TAN & Certificate of Incorporation will be issued from the concerned department. Now, the company is required to open a current bank account by using these documents. You can contact us for assistance with your current bank account opening.
The process of registering a Public Limited Company is complicated and involves various compliances. Our experts at Professional Utilities can simplify the whole registration process for you. Register your Public Limited Company Online in 3 easy steps:
As per the Companies Act 2013, you need to provide proper identity proof of members and directors along with valid address proof of the business office. It is important to note that you don't need to own a commercial property for company registration; one can use his residential address for incorporation of the company. Here are the documents required:
Post incorporation of Public Limited Company, you’ll receive the following documents:
The total cost of Public Limited Company registration in India, including government and professional fees, starts from ₹11,999 and takes around 14-21 working days.
|Digital Signature Certificate||₹7,000|
*Important Note: The total incorporation fees of a Public Ltd Company varies from state to state. Refer to the map for state-wise prices.
On average, it takes around 14-21 working days to register a Public Limited company in India subject to document verification by the Ministry of Corporate Affairs (MCA).
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You can register your public limited company with a minimum of 7 members and three of them must be the directors of the company. You’re required to arrange proper identity and address proof of directors, members and business office along with declaration of a professional like CA, CS, etc.
The formation of a public limited company requires at least seven members.
Yes, a public limited company can be listed on stock exchange. This type of business entity is meant to offer shares to the general public for raising capital by various methods like Initial Public Offerings (IPO).
Public limited company registration is a complete online process. The total time for registering a Public Limited Company takes around 7-14 working days subject to document verification by MCA.