A public limited company can get easily registered by following a few simple steps and after fulfillment of eligibility criteria as stated in the Companies Act 2013.
A public limited company registration best suits entrepreneurs who are willing to take their businesses to large-scale operations. A minimum of 7 members are required to start a public limited company, and no -limit is prescribed for the maximum number of members.
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The government of India sets multiple regulations to comply with before starting a public company in India. The public limited company in India enjoys the benefits of a corporate entity merged with limited liability.
In case you have further plans to acquire money from the general public as equity money, then forming a public limited company is the best option available to you.
Be prepared with the minimum paid-up capital of INR 5 lakhs and follow the below-mentioned step-by-step registration procedure.
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Register a Public Limited Company: Step-by-step Procedure
Although the registration procedure is nearly the same as a private entity registration, the following below are the steps involved in public company incorporation.
Step 1 – Procure a Digital Signature Certificate (DSC)
The primary thing that has to be done on an earlier hand is acquiring a Digital Signature Certificate (DSC). Every director must get himself a separate DSC.
Digital and electronic signatures both must have the same information about the director. The certifying authority ensures this important document.
The application for DSC includes the Director’s full name, PAN, Date of birth, Identity proof, and voter ID card. One can easily apply for DSC online. There are separate provisions ensured for its usage. It is safest in electronic form.
Step 2 – Get prepared with Director Identification Number (DIN)
All company directors must register for a Director Identification Number (DIN). The Ministry of corporate affairs has clarified the process of acquiring DIN. It can be availed easily by filling SPICe+ form.
It is mandated in the companies act amendment that every person who wants to become a director must possess a unique DIN. It was first introduced in 2006 when two newly imposed sections, i.e., 266A and 266G, were declared compulsory.
Step 3 – Register company name
The next important step is to check whether the name of the choice is available for registration or not. One can easily check the MCA portal.
Make sure the proposed name must not copy or replicate the existing trademark or name.
Before starting the registration process, make sure to get the name approved by ROC. Give 2-3 names in the preference order. It takes nearly 5 working days to get the name application approved.
Step 4 – Submit SPICe+ Form
After the acceptance of the name approval application. Now the applicant can easily apply for a certificate of incorporation by filling up the SPICe+ form.
All the related and necessary documents like MOA and AOA must get submitted along with the form.
Once the registration process gets completed, the director will get easy access to services available at the MCA portal, which include filling out e-forms and viewing public documents.
Step 5 – Get an Incorporation certificate
After the submission of the application, along with all the prescribed documents, the registrar will examine the application.
After getting verified and found true and authentic, the certificate of incorporation will get issued by the public company. One can apply for a Business commencement certificate as well.
The incorporation certificate consists of a unique Corporate Identification Number (CIN) and incorporation date and is issued only once authorities approve the paperwork after processing.
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Step 6 – Obtain PAN and TAN for the company
After getting the incorporation certificate, the members, including the company’s director, can go directly to the MCA portal for a PAN card.
Both the Permanent Account Number (PAN) and Tax-deduction Account Number (TAN) are to be issued in the company’s name. It is obtained from the assessing officer of the Income tax department of your state.
Step 7 – Open a separate Bank account
At last, it is much better to operate the new company expenses with a new savings account. It is an optional measure and completely depends on the individual’s choice.
One can open a separate savings account with a company name by providing PAN details and an incorporation certificate.
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Eligibility and Documents required
Requirements for settling up a public limited company as per the companies act 2013 are
- Minimum 7 shareholders are required for the formation
- Minimum 3 directors are required for a public limited company
- The minimal authorized capital of INR 5 lakhs is required
- Digital Signature certificate of director while submitting self-attested copies of KYC documents
- Directors of the proposed company will need DIN
- The name must be as per the rules of companies act
- MOA/AOA and duly filled FORM DIR-12
- Registration fee payment to the ROC
Documents required
The list of documents that one must carry along includes
- Proof of Identification – PAN card, Passport, or Utility Bills
- Proof of Address – Aadhar card, Ration card, Voter ID & Driving license
- Proof of residence – Electricity Bill
- Rent agreement – In the case of rented property
- Copy of Sale Deed / Property Deed
- No objection certificate (NOC) from a landlord
- DIN and DSC of all Directors
- MOA and AOA of the company
Bottom Line
Starting a firm is a tough choice to make; when an entrepreneur starts a company, he understands his goals and ambitions. One thing that generally every business owner underestimate is the selection of the right type of company structure.
Public limited company suits best to those who have a goal to take their company PAN India and have plans to acquire funding from the public. If you are planning to list your company on a stock exchange, then it is suggested to opt for a public limited company.
Also, if you have a vision of taking it on a global scale and wish your firm to have unlimited liability with a large amount of money.
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FAQs About Public Limited Company Registration
Is registration of a public limited company compulsory?
As per the companies act 2013, it must be filed with the state’s registrar of companies.
When can a public company start working?
A public company cannot start its operation until the certificate of commencement has not been obtained from the Registrar of Companies.
What are the disadvantages of having a Public limited company?
- Loss of control
- Higher set-up cost
- More legal responsibilities
- Complex accounting needs
- Unsafe to the market
How much time is needed to register a public company?
It takes nearly 1-2 weeks of time to register a public company from the date of incorporation application.
What are the requirements to become a director in a public company in India?
A person must have attained 18 years of age. No limitations in terms of residency or citizenship are there; even a foreign national can become a director.
