{"id":1825,"date":"2019-12-27T14:04:35","date_gmt":"2019-12-27T14:04:35","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=1825"},"modified":"2021-04-13T11:21:21","modified_gmt":"2021-04-13T05:51:21","slug":"how-to-register-a-public-limited-company-in-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/how-to-register-a-public-limited-company-in-india\/","title":{"rendered":"How to Register a Public Limited Company in India?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">As per the\u00a0Companies Act, 2013, a Public Limited Company is a type of company that has limited liability and can offer its shares to the general public. Furthermore, anyone can acquire its stock in two ways. First, privately through Initial Public Offerings (IPO) or secondly by selling on the stock market. A Public Limited Company is sternly regulated and is supposed to present its financial status to all the shareholders. Keep reading this article to know more about Public Limited Companies, its requirements, and how you can register one.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/how-to-register-a-public-limited-company-in-india\/#What_is_a_Public_Limited_Company\" >What is a Public Limited Company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/how-to-register-a-public-limited-company-in-india\/#What_are_the_requirements_to_register_a_Public_Limited_Company\" >What are the requirements to register a Public Limited\nCompany?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/how-to-register-a-public-limited-company-in-india\/#Features_of_a_Public_Limited_Company\" >Features of a Public Limited Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/how-to-register-a-public-limited-company-in-india\/#Documents_required_for_Public_Company_Registration\" >Documents required for Public Company Registration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/how-to-register-a-public-limited-company-in-india\/#Procedure_to_obtain_Public_Limited_Company_Registration\" >Procedure\nto obtain Public Limited Company Registration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/how-to-register-a-public-limited-company-in-india\/#Advantages_of_Public_Limited_Companies\" >Advantages of Public Limited Companies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/how-to-register-a-public-limited-company-in-india\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_a_Public_Limited_Company\"><\/span>What is a Public Limited Company?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Public\nLimited Company is defined under the Companies Act, 2013. Public Limited\nCompanies are a voluntary accumulation of members which can be incorporated by\nminimum of seven members. Moreover, it has separate legal existence apart from\nits members. Also, the shares of the company can be freely transferred without\ntaking prior approval from the shareholders.&nbsp; Furthermore, the existence\nof the entity is not affected due to the demise, retirement and insolvency of\nany of the shareholders. Also, Public Limited Companies can invite capital and\ndeposits from the general public. Additionally, these companies can be listed\nor unlisted.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"541\" height=\"329\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2019\/12\/image-19.png\" alt=\"Classification of companies\" class=\"wp-image-1826\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2019\/12\/image-19.png 541w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2019\/12\/image-19-300x182.png 300w\" sizes=\"(max-width: 541px) 100vw, 541px\" \/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_requirements_to_register_a_Public_Limited_Company\"><\/span>What are the requirements to register a Public Limited\nCompany?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are\nvarious rules &amp; regulations prescribed under the Companies Act, 2013 for\nsetting up a Public Limited Company. Therefore, you should keep the following\npointers in mind before registering a Public Limited Company:<\/p>\n\n\n\n<ul><li>Minimum 7 shareholders are required to incorporate a public limited company;<\/li><li>Minimum 3 directors are required to form this type of company<\/li><li>Digital Signature Certificate (DSC) of all the proposed directors &amp; shareholders;<\/li><li>Also, Directors of the proposed company would require a (DIN) Director Identification Number;<\/li><li>Moreover, an application has to be made to the MCA for selecting the company name;<\/li><li>Then incorporation\u00a0<a href=\"https:\/\/corpbiz.io\/learning\/new-spice-plus-form-launched-by-mca\/\"><strong>form SPICe+<\/strong><\/a>\u00a0is filed with the ROC along with the necessary documents;<\/li><li>Intimation &amp; prior approval of SEBI is required in case of a listed company;<\/li><li>Making the payment of the prescribed registration fees to the ROC for\u00a0<a href=\"https:\/\/corpbiz.io\/public-limited-company-registration\"><strong>public limited company registration<\/strong><\/a>.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Features_of_a_Public_Limited_Company\"><\/span>Features of a Public Limited Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The characteristics of Public Limited Companies are as follows;<\/em><\/strong><\/p>\n\n\n\n<ul><li>Directors:\u00a0According to the provisions of the Companies Act, 2013 to start a public limited company, a minimum of 3 directors are needed;<\/li><li>Liability is Limited:\u00a0The liability of each shareholder is limited. Generally speaking, a shareholder of a public company isn\u2019t      personally liable for any loss or debts of the company for any amount      greater than the amount invested by them on the contrary to the      partnerships and\u00a0<a href=\"https:\/\/corpbiz.io\/sole-proprietorship-registration\"><strong>sole proprietorship firms<\/strong><\/a>, where the business owners are personally liable for the losses of the business. However, this characteristic of a public company does not offer legal immunity to the shareholders. The shareholders will be held responsible for their own illegal actions.<\/li><li>Prospectus:\u00a0There is a requirement under the Companies Act for listed public limited companies to issue a prospectus. Furthermore, a prospectus is a comprehensive statement of the affairs of the company issued by public limited companies for its public. \u00a0<\/li><li>Name:\u00a0It is mandatory as per the <em><strong>Companies Act, 2013<\/strong><\/em><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Companies_Act_2013\"><em><strong>[1]<\/strong><\/em><\/a><\/sup>,\u00a0for all the public limited companies to add the word \u2018limited\u2019 after their name.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_required_for_Public_Company_Registration\"><\/span>Documents required for Public Company Registration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The following documents are required to register a public Limited\nCompany in India;<\/em><\/strong><\/p>\n\n\n\n<ul><li>The Proof of identity of all the shareholders and directors<\/li><li>Address proof of all the directors and shareholders<\/li><li>PAN of all the shareholders and directors<\/li><li>The Utility Bills of the proposed office<\/li><li>A\u00a0No Objection Certificate (NOC)\u00a0from the landlord where the office of the company is situated<\/li><li>(DIN) Director Identification Number\u00a0of all the directors<\/li><li>(DSC) Digital Signature Certificate\u00a0of the directors<\/li><li>(MOA)Memorandum of Association\u00a0<\/li><li>(AOA)Articles of association\u00a0<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Procedure_to_obtain_Public_Limited_Company_Registration\"><\/span>Procedure\nto obtain Public Limited Company Registration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li><strong>Step 1: Apply For The Digital Signature Certificate<\/strong><\/li><\/ul>\n\n\n\n<p>apply for the Digital\nSignature Certificate for all the directors in the company. DSC is an valid and safe method to\nsign the e-forms and file\nthe documents on an e platform. It is a obligatory document.<\/p>\n\n\n\n<p>A director can easily\nobtain DSC from Certifying Authorities or CAs with copies of self-attested identity proof. DSC is obtained within 1\n-3 working days.<\/p>\n\n\n\n<ul><li><strong>Step 2: Name Verification<\/strong><\/li><\/ul>\n\n\n\n<p>The third step involves\nregistration of the name\nof the company. The\nname availability can be\nchecked on the MCA portal by following this step:<\/p>\n\n\n\n<p>Open the MCA Portal> select MCA services and Click on Check Company Name<\/p>\n\n\n\n<div class=\"shadow1\"><strong>Note:<\/strong> The company name must be uniques and should not be registered or taken and must not be similar to a brand name.<\/div>\n\n\n\n<ul><li><strong>Step 3: Filing Form SPICe+<\/strong><\/li><\/ul>\n\n\n\n<p>After the approval of the company\u2019s name the person should file\nthe SPICe+ form to get\nthe incorporation certificate\nof the company. Together\nwith it, the person\nshould file all the mandatory\ndocuments like the\nMOA (Memorandum of Association) and AOA (Article of Association). These two\ndocuments contains\nthe information about\nthe aims, objectives,\nvisions, responsibilities,business\nactivities of all the\nshareholders and\nthe directors and description\nof the proposed company.<\/p>\n\n\n\n<ul><li><strong>Step 4: Obtaining Certificate Of Incorporation<\/strong><\/li><\/ul>\n\n\n\n<p>The company would receive the Certificate of Incorporation after submitting all the\napplications and document to the authorities once they have verified it, which shall also include the CIN and date of\nincorporation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Advantages_of_Public_Limited_Companies\"><\/span>Advantages of Public Limited Companies<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The pros of forming public limited companies are as follows;<\/em><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">You can gain more capital<\/h3>\n\n\n\n<p>As the Shares\nare offered to the general public at large, that means anyone can invest in\npublic limited companies. Hence, it improves the capital of the company.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">&nbsp;Also, you get more attention<\/h3>\n\n\n\n<p>Also, being\nlisted on a stock market ensures that mutual funds, hedge funds and other\ntraders take note of the business of the company. It may result in better\nbusiness opportunities for Public Limited Companies.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The risk is distributed<\/h3>\n\n\n\n<p>As the shares\nare sold to the public the unsystematic risk of the market is distributed.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Opportunities for growth and expansion<\/h3>\n\n\n\n<p>Due to the\ndecreased risk, there is a perfect opportunity for growing and expanding the\nbusiness by investing in new projects from the money raised through shares.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A Public\nLimited Company is one which can publicly trade its shares. Furthermore, this\ntype of company must have at least seven members. Also, it is the largest form\nof business entity model in India. Moreover, there is no limitation on the\nmaximum limit of members of the company. However, in the case of Listed Public\nCompanies, there is a need to take approval from SEBI after five hundred\nmembers in the entity.<\/p>\n\n\n\n<p><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important\"><a href=\"https:\/\/corpbiz.io\/learning\/register-your-limited-liability-partnership-firm-in-india\/\">How to Register Your Limited Liability Partnership Firm in India?<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As per the\u00a0Companies Act, 2013, a Public Limited Company is a type of company that has limited liability and can offer its shares to the general public. Furthermore, anyone can acquire its stock in two ways. First, privately through Initial Public Offerings (IPO) or secondly by selling on the stock market. A Public Limited Company [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":1828,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[156],"tags":[250],"acf":{"service_id":"2"},"authorName":"Savvy Midha","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2019\/10\/Savvy-Midha.jpg","authorDescription":"Savvy Midha holds the degrees of Bachelor of Commerce(honors), LL.B and Company Secretary. She is an experienced Legal and Financial writer with expertise in research, drafting, and copy-writing.","postViews":18537,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1825"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=1825"}],"version-history":[{"count":16,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1825\/revisions"}],"predecessor-version":[{"id":28897,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1825\/revisions\/28897"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/1828"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=1825"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=1825"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=1825"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}