Public Limited Company Registration in India
A Public Limited Company is a type of business structure that offers shares to the general public and enjoys wide access to capital. It is governed by the Companies Act, 2013 and it is regulated by the Ministry of Corporate Affairs (MCA). A Public Limited Company must have at least three directors and seven shareholders, with no maximum limit on the number of shareholders. It can raise capital by issuing the shares and debentures to the public, which is an ideal for businesses that plan to scale up quickly and need large investments.
Public Limited Companies in India are appropriate for businesses that aim for a broader market visibility and may eventually list on a stock exchange. This form of business ensures transparency, trust, high level of credibility and strong governance due to its statutory compliance requirements...!
Eligibility Criteria
To register a Public Limited Company in India, certain conditions must be met:
- Minimum 3 Directors – At least three individuals must act as directors.
- Minimum 7 Shareholders – A public company must have at least seven shareholders. Directors can also be shareholders.
- Indian Office Address – A valid registered office address in India is mandatory.
- Unique Name – The company name must be unique, novel and not similar to any existing company or trademark.
- Capital Requirements – There is no requirement for minimum paid-up capital as per the Companies Act, 2013, but an appropriate capital should be declared depending on the business activity.
- DSC & DIN – Digital Signature Certificate (DSC) and Director Identification Number (DIN) for all directors.
Registration Process
The registration of a Public Limited Company involves the following steps:
1. Obtain DSC and DIN
- Apply for Digital Signature Certificates (DSC) for all proposed directors.
- Apply for Director Identification Number (DIN) for all the proposed directors through the MCA portal.
2. Name Approval
- File the RUN (Reserve Unique Name) form to propose a unique company name.
- Once approved, it is reserved for 20 days.
3. Drafting of MOA & AOA
- Prepare the Memorandum of Association (MOA) and Articles of Association (AOA) which define the company’s objectives and internal rules.
4. Filing SPICe+ Form
- File the SPICe+ (Simplified Proforma for Incorporating Company electronically Plus) form on the MCA portal, which includes company details, director details, and the registered office address.
- Submit MOA, AOA, and other documents as attachments.
5. Issuance of Certificate of Incorporation
- After verification by the Registrar of Companies (ROC), a Certificate of Incorporation (COI) will be issued.
- The company also gets a Corporate Identification Number (CIN), PAN, and TAN.
6. Apply for Business Commencement
- After incorporation, file INC-20A (Declaration of Commencement of Business) within the duration of 180 days, along with proof of subscription money...!
Required Documents
Below is the list of essential documents required:-
For Directors and Shareholders
- PAN Card (mandatory for Indian nationals)
- Passport (for foreign nationals)
- Aadhaar Card / Voter ID / Driving License (as address proof)
- Passport size photo
- Email ID and mobile number
For Registered Office
- Utility bill (Electricity Bill / Water Bill / Gas Bill)
- Rent Agreement (if rented)
- NOC from owner
Fees
The cost of Public Limited Company registration depends on various factors like professional fees, state stamp duty, and number of directors. On average:
- Government Fees: It depends upon the authorised capital and the state of registration. Fees increase with higher authorized capital or additional services.
- Additional charges: PAN, TAN application, stamp duty, professional fees (if any), and the digital signature cost.
Note: Stamp duty may vary, it based on the registered office state.
Timeline
The registration process generally takes 15 to 25 working days, depending on document verification and MCA approvals. Delays may occur if resubmissions or clarifications are requested.
Benefits of Public Limited Company
1. Easy Fund Raising
Public Limited Companies can raise the capital by issuing shares to the public or through listing on stock exchanges.
2. Limited Liability
Shareholders liability is limited to the amount has been unpaid on their shares.
3. Credibility and Transparency
Due to strict compliance, these companies enjoy greater credibility among investors and stakeholders.
4. Growth Opportunities
Easy access to capital helps in expanding business operations and entering new markets.
5. Perpetual Succession
The company continues to exists even if the ownership or management changes.
6. Separate Legal Entity
The company has its own separate legal identity, separate from its shareholders and directors.
Why Choose Us for Registration?
Registering a Public Limited Company involves several legal steps and compliance formalities. Our team of experts at CRSPL Business Consultants makes the process seamless and quick for you by offering:-
- End-to-end support from name approval to incorporation
- Assistance in drafting MOA and AOA
- Timely updates and professional handling of documentation
- PAN, TAN, GST, and bank account assistance
- Competitive pricing and transparent service
We simplify the complex process and help you establish your company with confidence.
| Read More:- How to Convert of Private Limited Company into LLP? |
Conclusion
To register a Public Limited Company is a strategic and well- planned step for businesses who are looking forward to grow at a large scale. With its high ability to raise the capital from the public, limited liability protection, and high credibility, it is one of the most robust forms of business structures in India. Though it involves rigorous compliance, the long-term advantages outweigh the various initial challenges. If you are planning to expand or enhance your business with a public offering or need a trustworthy structure for large operations, a Public Limited Company is the ideal choice. Let us help you through each step of the registration process and ensure your business starts on a strong foundation.
Frequently Asked Questions (FAQs)
1. Can a Public Limited Company start its operations immediately after registration?
No. A Public Limited Company must file Form INC-20A (Declaration for Commencement of Business) after incorporation and only then it can commence business activities.
2. Is it mandatory to list a Public Limited Company on the stock exchange?
No. Listing is optional. A Public Limited Company may choose to remain unlisted and still function as a public company.
3. Can a foreign national become a director in a Public Limited Company?
Yes, a foreign national can easily become a director if they meet the legal requirements, including having a valid DIN and submitting notarized documents.
