A Public Limited Company is an alliance of seven or more members for a business purpose. This business type/structure is famous among entrepreneurs because the Company can list and trade its shares on the Stock Exchange. Usually, this form of business structure is considered by those who have a large form of infrastructural plans. A public limited Company is also known as a large Company and is formed in order to raise funding from the Public through IPO, FPO etc. It is formed and regulated under the Companies Act 2013. The Company's ownership is held by a minimum of 7 members and managed by a minimum of 3 directors. The most significant advantage of this type of business is the liability of the members is limited to the extent of their contribution to the capital. Moreover, the shares of a Public Company can be freely transferable to the Public.

A Public Company can be classified into two types: Listed or Unlisted. Listed Companies are those whose shares can trade on the Stock Exchange, and Unlisted Companies are those whose shares can not trade on the Stock Exchange.

As per Section 2(76) of the Companies Act, 2013, the Public Limited Company means the Company, which is not a Private Company. Additionally, under Company law, a Private Company that is a subsidiary of a Public Company is considered to be a Deemed Public Company.

• A Company continues its existence despite the Death, Bankruptcy of Directors and Change in ownership of the Company;
• Separate legal identity from the owners or persons managing and controlling it;
• The liability of the members is limited to the extent of their contribution to the share capital;
• A Company can quickly raise money through Bank Loan, Public offerings and Private Placement;
• The shares can be easily transferable to the general Public;
• The listed Company has to share its financial position on a quarterly and annual basis with the Stock Exchange;
• Right to initiate any legal proceeding against the other party;
• Various tax advantages, such as a tax on the distribution of dividends, are less;
• No requirement for a minimum amount of investment to start the Company;
• Greater prospects for the Company's growth and expansion

Documents and Information required:

• A minimum of seven members (shareholders) and three directors are required to form a Company;
• Passport size photograph of all the proposed Directors;
• Self-attested copy of pan card and aadhaar card of all the proposed Directors;
• Self-attested copy of bank statement/ telephone bill/ gas bill (anyone) of all the proposed Directors;
• Self-attested copy of passport/ driving license/ voter card (anyone) of all the proposed Directors;
• Active email addresses and contact numbers of all the proposed Directors;
• Active email address and contact number of the proposed Company;
• Educational qualifications and staying period at the present address of all the proposed Directors;
• Unique name and objects of the proposed Public Limited;
• Total contribution and sharing ratio of the proposed Public Limited;
• Registered office address proof (If owned - Latest utility bill and NOC) (If rented - Rent agreement, Latest utility bill, and NOC from landlord)

Note: A Passport is mandatory if the applicant is a Foreign National, and all the documents should be apostille.

A Public Limited Company must have at least 3 directors and 7 members. Moreover, there is no requirement for minimum authorized and paid-up capital to incorporate the Company. The procedure for incorporation of a company is mentioned below:

Step 1: Digital Signature Certificate (DSC)

The persons who intend to incorporate the Company must have a DSC to file forms under the Companies Act. The same can be applied to us.

Step 2: Director Identification Number (DIN)

As per the governing law, the persons proposing to form a Company must have a valid DIN. DIN can be applied while filing incorporation forms if the person doesn't have the same.

Step 3: Form Spice+ Part A for Name Availability of the Company

The Company's proposed name would be filed with the Ministry of Corporate Affairs (MCA) in the form Spice+ Part A along with a fee of ₹1000/-. The Spice+ Part A form can be filed either individually or with Spice+ Part B along with incorporation documents. After approval, the chosen name will be held for 20 days. Such a period can extend by paying an additional fee before the expiry.

Step 4: Form Spice+ Part B for Incorporation

As per the new rule, the DIN for new directors, company registration, the appointment of directors, intimation of registered office, application of PAN/TAN/EPFO, professional tax, and opening of bank account all should be filed together in a single form along with the prescribed fees. For filing the form, an attachment/ information of the E- AGILE Pro, E- INC-9, E-Memorandum of Association (MOA), E-Article of Association (AOA), and the Documents mentioned in the above segment are required.

E- AGILE Pro form is filed for applying PAN, TAN, EPFO, ESIC, GST, Professional Tax Registration (For Maharashtra only), and Opening of Bank Account of a proposed Company. All the registration is mandatory to be applied in Spice+ form except GST, which can be applied separately after the incorporation of a Company. Currently, Punjab National Bank, HDFC Bank, SBI Bank, Kotak Mahindra Bank, ICICI Bank, and some other banks have been associated with the Spice+ form for bank account opening.

The Registrar, after satisfaction of the documents and information, will provide the Certificate of Incorporation.

Step 5: PAN/TAN

As per the new rule, the Certificate of Incorporation of the Company mentioned the PAN/TAN of the Company. This is mandatory to apply when filing incorporation documents under the Spice+ form.

Step 6: EPFO, ESIC & PROFESSIONAL TAX

As per the new rule, EPFO, ESIC, and PROFESSIONAL TAX (Currently, this tax is applicable in Andhra Pradesh, Assam, Bihar, Goa, Gujarat, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Meghalaya, Orissa, Sikkim, Tamil Nadu, Telangana, Tripura & West Bengal. The amount of professional tax differs from one state to another, but it has an upper limit of Rs. 2500 per annum per individual.) numbers are auto-generated by the respective department after the registration of the Company with the Ministry of Corporate Affairs (MCA). You will get registration certificates at your registered email address.

Step 7: BANK ACCOUNT

The bank account number will be generated by the respective bank, which was selected at the time of Incorporation after Company Registration. Bank will activate your account after completing the physical verification process.

The CRSPL is the leading Business Consulting Company and recognized start-up by the DIPP Government of India. CRSPL is managed by professionals with more than 10 years of experience in this field and has already provided satisfactory results to numerous renowned clients. CRSPL is the one-stop solution for Secretarial, Legal, Taxation, Finance, and Technology assignments across India. Key highlights for you:-

  10 Years of Industry Experience;
  Quick, Best & Affordable Services;
  24x7 Service Support;
  4.8 Stars Rating on Google;
  4.7 Stars Rating on JustDial;
  We Support Local for Vocal