{"id":3243,"date":"2020-02-12T10:35:54","date_gmt":"2020-02-12T10:35:54","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=3243"},"modified":"2021-06-01T16:50:05","modified_gmt":"2021-06-01T11:20:05","slug":"online-public-limited-company-registration-process-in-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/online-public-limited-company-registration-process-in-india\/","title":{"rendered":"Public Limited Company Registration Process in India"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Public Limited Company is registered according to the rules prescribed under the <strong><em>Companies Act 2013<\/em><\/strong> of India. Public limited company has <strong><em>limited liability<\/em><\/strong> and <strong><em>offer shares to general public at large<\/em><\/strong>. This type of business is suitable for large scale investment where the capital is very large and company is willing to receive money at a large scale from public. Usually, public trust these companies more as there is less risk as compared to others.Here we will discuss about the <a href=\"https:\/\/corpbiz.io\/public-limited-company-registration\"><strong>process of Public Limited Company Registration<\/strong><\/a>.<\/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\/online-public-limited-company-registration-process-in-india\/#What_is_Public_Limited_Company_Registration\" >What is Public Limited\nCompany Registration?<\/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\/online-public-limited-company-registration-process-in-india\/#Characteristics_of_Public_Limited_Company_Registration\" >Characteristics of 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-3\" href=\"https:\/\/corpbiz.io\/learning\/online-public-limited-company-registration-process-in-india\/#Public_Limited_Company_Registration_ProcessRequirements\" >Public Limited Company Registration Process\/Requirements<\/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\/online-public-limited-company-registration-process-in-india\/#Documents_Required_for_Public_Limited_Company_Registration\" >Documents Required for 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-5\" href=\"https:\/\/corpbiz.io\/learning\/online-public-limited-company-registration-process-in-india\/#What_will_be_the_Cost_for_Public_Limited_Company_Registration\" >What will be the Cost\nfor 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\/online-public-limited-company-registration-process-in-india\/#What_are_the_benefits_of_Public_Limited_Company\" >What are the benefits\nof Public Limited Company?<\/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\/online-public-limited-company-registration-process-in-india\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Public_Limited_Company_Registration\"><\/span>What is Public Limited\nCompany Registration?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A Public Limited Company has more transparency in business in comparison to other type of business entities. This company is formed <strong><em>by 7 members and 3 directors<\/em><\/strong>. According to the rules prescribed in the Companies Act 2013 the company can issue shares to public and accept deposits from public. The stock of these companies can be easily acquired either privately or through initial public offering (IPO) or by trading in the stock market. Public limited company is strictly regulated by the rules of the <strong><em>Companies Act 2013<\/em><\/strong><sup><a href=\"https:\/\/www.mca.gov.in\/Ministry\/pdf\/CompaniesAct2013.pdf\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">[1]<\/a><\/sup> and the company should show its true financial status to the shareholders.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Characteristics_of_Public_Limited_Company_Registration\"><\/span>Characteristics of Public Limited Company Registration?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" width=\"644\" height=\"389\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/02\/image-2.png\" alt=\"Characteristics of Public Limited Company Registration\" class=\"wp-image-3253\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/02\/image-2.png 644w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/02\/image-2-300x181.png 300w\" sizes=\"(max-width: 644px) 100vw, 644px\" \/><\/figure>\n\n\n\n<ul><li><strong>Members<\/strong><\/li><\/ul>\n\n\n\n<p>As\nper provisions of Companies Act 2013 the company requires a <strong><em>minimum<\/em><\/strong>\n<strong><em>of\n7 numbers<\/em><\/strong> to get started. There is no such&nbsp; limit on the maximum number of members in the\ncompany. <\/p>\n\n\n\n<ul><li><strong>Directors <\/strong><\/li><\/ul>\n\n\n\n<p>For\nthe company to come in operation the existence <strong><em>of minimum 3 directors<\/em><\/strong>\nare needed. Even there is&nbsp; no restriction\non the maximum number of directors. <\/p>\n\n\n\n<ul><li><strong>Name<\/strong><\/li><\/ul>\n\n\n\n<p>The\nname of the company should be <strong><em>unique<\/em><\/strong> and one should check the\ncompany name availability before finalizing any name. The name chosen should\nnot violate any of the rules prescribed in the Companies Act 2013.<\/p>\n\n\n\n<ul><li><strong>Capital<\/strong><\/li><\/ul>\n\n\n\n<p>No&nbsp; minimum paid up capital is required.<\/p>\n\n\n\n<ul><li><strong>Prospectus<\/strong><\/li><\/ul>\n\n\n\n<p>The\ncompany is required to issue a prospectus for the public. Prospectus is <strong><em>detailed\nstatement of<\/em><\/strong> <strong><em>the company affairs<\/em><\/strong> which should be\nknown to all the shareholders investing in the company. <\/p>\n\n\n\n<ul><li><strong>Limited Liability<\/strong><\/li><\/ul>\n\n\n\n<p>The\n<strong><em>liability\nof each member or shareholder is limited<\/em><\/strong>. As in when the company faces\nany loss the individual shareholder can sell there assets for payment. No risk\nis there to any individual asset in this case.<\/p>\n\n\n\n<ul><li><strong>Perpetual Succession<\/strong><\/li><\/ul>\n\n\n\n<p>The\nlife of company keeps on existing in eyes of law forever. In case of <strong><em>death,\ninsolvency or<\/em> <em>bankruptcy<\/em><\/strong> the\ncompany business is <strong><em>not affected<\/em><\/strong>.<\/p>\n\n\n\n<ul><li><strong>Separate Legal Entity<\/strong><\/li><\/ul>\n\n\n\n<p>As prescribed under the Companies Act 2013 the Public Limited Company is a separate legal entity. The members <strong><em>of the company have no liability to the creditors<\/em><\/strong> of the company.&nbsp; <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/how-to-register-a-public-limited-company-in-india\/\">How to Register a Public Limited Company in India?<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Public_Limited_Company_Registration_ProcessRequirements\"><\/span>Public Limited Company Registration Process\/Requirements<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" width=\"580\" height=\"350\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/02\/image-3.png\" alt=\"Public Limited Company Registration Process\" class=\"wp-image-3254\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/02\/image-3.png 580w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/02\/image-3-300x181.png 300w\" sizes=\"(max-width: 580px) 100vw, 580px\" \/><\/figure>\n\n\n\n<p> <\/p>\n\n\n\n<ul><li>Identification\nof minimum of 7 members and 3 directors.<\/li><li><strong><em>Digital\nSignature Certificate (DSC)<\/em><\/strong> of one of directors\nwith self attested identity proof of the same director. As the public limited\ncompany registration form is filed online so <strong><em>DSC <\/em><\/strong>of directors is\nneeded. The <strong><em>DSC <\/em><\/strong>can be obtained by the certifying authority in India.<\/li><li>&nbsp;<strong><em>Director Identification Number<\/em><\/strong> <strong><em>(DIN)<\/em><\/strong>\nthat can be received by submitting the required documents of the director in\nthe Ministry of Corporate Affairs. DIN can be obtained by filing an application\nwith the id proofs of the director to be furnished to the Ministry of Corporate\nAffairs. Now, DIN for maximum 3 directors can be directly obtained through\nfiling of public limited company registration form. <\/li><li>It\nis very important to have a proper registered address for the company. All the\nimportant documents will be send by <strong><em>Registrar of Company (ROC)<\/em><\/strong> to this\naddress only. This address need not be a commercial address only. It can be of\nresidential address of any of the members. <\/li><li>The\ncompany name should end with \u2018<strong><em>limited<\/em><\/strong>\u2019. Before heading for\nincorporation an application should be made to the ROC for name approval. The\napplication of name approval should be filed with multiple names in order of\npreference of the names. The name application is filed in <strong><em>RUN (Reserve Unique Name) Form<\/em><\/strong>\nof the Ministry of Corporate Affairs.<\/li><li>After\nthe name approval, the company incorporation documents such as <strong><em>Memorandum\nof Association (MOA<\/em><\/strong>) and <strong><em>Articles of Association (AOA)<\/em><\/strong> should\nbe put into effect by the members. Now these documents are in electronic form\ni.e. eMOA and eAOA.<\/li><li>Once\nthe eMOA and eAOA are prepared, they have to be submitted along with the <strong><em>incorporation\nform (SPICe)<\/em><\/strong> to the ROC.<\/li><li>After\nverifying all the documents, ROC will issue the <strong><em>Certificate of Incorporation\n(COI)<\/em><\/strong>. The ROC will also allocate a <strong><em>Certificate Identification Number\n(CIN)<\/em><\/strong> to the company which is registered.<\/li><li>Once\nthe above requirements are completed the members cannot start the business\nuntil the declaration should be made regarding the subscription money to be\npaid in 180 days by the directors.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_Required_for_Public_Limited_Company_Registration\"><\/span>Documents Required for Public Limited Company Registration?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">From Directors<\/h3>\n\n\n\n<ul><li>Copy\nof PAN card of directors<\/li><li>Passport\nsize photographs of directors<\/li><li>Copy\nof Adhaar Card and Voter Id of directors<\/li><li>Director\nidentification number of all directors<\/li><li>Digital\nsignature of all directors<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">For Proposed Office<\/h3>\n\n\n\n<ul><li>Utility\nbill of Proposed Office<\/li><li>Copy\nof property papers(if owned property)<\/li><li>Copy\nof rent agreement(if rented property)<\/li><li>Landlord\nNOC (No objection certificate)<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_will_be_the_Cost_for_Public_Limited_Company_Registration\"><\/span>What will be the Cost\nfor Public Limited Company Registration?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\ncost of registration of the company varies and it depends on the authorized\ncapital of the company and the registered office address of the company.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_benefits_of_Public_Limited_Company\"><\/span>What are the benefits\nof Public Limited Company?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h4 class=\"wp-block-heading\">\u00d8&nbsp; Raising\nof Capital by Issue of Shares Publicly<\/h4>\n\n\n\n<p>The\ncompany can issue share to public at large i.e. there is a more capital to\nreinvest back in the company. <\/p>\n\n\n\n<h4 class=\"wp-block-heading\">\u00d8&nbsp; Expanding\nShareholder Base and Spreading Risk<\/h4>\n\n\n\n<p>The\nlarge number of shareholder base helps in spreading the risk of company\nownership among a large number of public at large. Also, there is no need to\nrely upon any one or two investors only. There is a huge number shareholder to\ninvest in the company which will be helpful to the company.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">\u00d8&nbsp; Growth\nand Development Opportunities<\/h4>\n\n\n\n<p>The\nlarge of capital investment in the company will help in growth of the company.\nWith more capital the business can be expanded, new projects can be started,\npaying off debts.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">\u00d8&nbsp; Liquidity<\/h4>\n\n\n\n<p>The\nshareholders are able to buy and sell shares easily (if listed on stock\nexchange). The shareholders are less bound to remain with company this fact attract\nmore investors for the company.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">\u00d8&nbsp; Prestige\n<\/h4>\n\n\n\n<p>The\naddition of PLC after your company name will add more honor and prestige to you\nCompanies name. It adds status to your company and the investors are more\ninfluenced by this.<\/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>The establishment of Public limited company is majorly done to generate a large number of capital from external sources i.e. general public coming for business together, global expansion, technological development. Hence, Public Limited Company registration is more suitable for investment rather other companies and more trustworthy. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/advantages-and-disadvantages-of-a-public-limited-company\/\">Advantage and Disadvantage of Public Company Registration<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Public Limited Company is registered according to the rules prescribed under the Companies Act 2013 of India. Public limited company has limited liability and offer shares to general public at large. This type of business is suitable for large scale investment where the capital is very large and company is willing to receive money at [&hellip;]<\/p>\n","protected":false},"author":16,"featured_media":3244,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[156],"tags":[306],"acf":{"service_id":"2"},"authorName":"Sakshi Sharda","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/02\/sakshi-sharda.jpg","authorDescription":"Sakshi Sharda has done BBALLB(HONS) and holds a strong knowledge on the matters pertaining to finance and law. From the past one year she is working as a legal advisor and in her leisure time she works on improvising her knowledge. Sakshi is spreading her knowledge by writing for Corpbiz.","postViews":8457,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/3243"}],"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\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=3243"}],"version-history":[{"count":16,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/3243\/revisions"}],"predecessor-version":[{"id":31384,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/3243\/revisions\/31384"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/3244"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=3243"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=3243"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=3243"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}