Public Limited Company  is registered under the Companies Act, 2013  which can do the business  on  Pan India basis. It is a separate entity different from its promoters who can be individuals or non individuals  like Companies or LLPs. The shares of the Public Company can be listed in stock exchanges and make general public its co-owners with its promoters. It is called public companies because of  the large participation of general public in its capital and the utilization of public fund for its operation. Being capital intensive and   larger geographical coverage, success of such public companies will impact general public also. Depending on the listing of its securities like share or debentures such companies will be further classified as Listed Public Companies and Unlisted Public Companies. The compliance requirement of public companies  are more due to the larger public involvement, wider shareholding and public fund utilization. Unlike private companies, shares of the public companies are freely transferable. Compulsory dematerialization of the shares of the public companies, eases the process of  transfer of such shares.  

Incorporation of a limited company in India

 1.Formation of Public Limited Company.

   A Public limited company  can have  unlimited number of members  and minimum number of members required is Seven ( 7 )

There should be at least three (3) directors and maximum number of directors permitted  is Fifteen (15)

Hence a minimum  Seven persons are required to form a Private limited Company. A minimum of any three of such persons are  to be selected as Directors

2.Formalities in incorporation

Incorporation is doing at the  Central Processing Centre of Ministry of Corporate affairs at Gurgaon and will be under the  jurisdiction of  Registrar of Companies of the State where the registered office is situated.

Incorporation is comprised of  following   steps

 A. Name Application and Approval

 For obtaining the desired name for the company to incorporate,  we have to apply to the ROC in specified form Spice+ and the processing may take 1 to 3 days and cost involved is  Rs. 1000/- subject to the availability of name.

B. Obtain Digital signature

    Since all the filing to the Registrar of companies is through on line, one of the promoter should obtain a Class 3 Digital signature which costs Rs. 2000/-. If the number of promoter subscribers is Seven, all the applicants are required to obtain the Digital signature. The application for DSC is  online and the process is involved mobile Email and video verification. On successful verification of application the applicant will get DSC in a secure device called E Token

C. Submission of Composite Incorporation documents for obtaining Certificate of incorporation and  DIN

Next step involved is preparation and submission of  incorporation documents like memorandum of association and  articles of association online portal of the Ministry of Corporate affairs

The following documents are required for online submission

For Director/shareholder/Director cum shareholder

  1. Board resolution for authorised signatory for the subscriber representing the company if share holder is a Company.
  2. Dir 2- Consent to become the director of the Company ( only for director)
  3. Pan Card Copy
  4. ID proof like passport copy, Aadhar card, Driving Licence or Voters ID
  5. Latest Address proof like mobile bill, telephone bill, electricity bill or bank statement. The proof should not be older than 2 months

For Registered office Address

  1. for the Registered office address, NOC from the owner of the premise or rental agreement copy along with latest copy of Electricity bill or Water bill or utility bill or Property tax paid receipt  is also required to be filed along with incorporation documents

If foreign national is subscriber for company,   all the incorporation documents signed by him need to be attested by Public Notary and to be apostilled as per the Hague convention

The new directors will get DIN Number and  Certificate of incorporation will be issued  in 1 to 3 days. At the Completion of registration of the company, the Ministry will issue the Incorporation certificate along with PAN Card and Tan Number

Thus for incorporation of a company, it  may take 4 to 7  days from the date of submission of proper documents for  DIN Number .

D. Submission of AGILE Form for obtaining GST Registration ESI, EPF Professional Tax and Bank account opening

 The Incorporation document comprise a mandatory online application form for applying for GST Registration ESI, EPF Professional Tax and Bank account opening.

GST registration is optional but other registrations are automatic. The applicant can select the Bank with whom they want to open their bank account in the Form Agile

E.  Spice+ and AGILE form for Name application, DIN Approval and Filing of Incorporation Document and for Other Registrations

The Ministry has recently introduced a Composite form for filing DIN application, Name approval and Incorporation Documents, GST and other registration. If we are very confident about  the  name we can use this form for registration of company  which will help to register the company with 4-7 days

3. Post Incorporation Compliances

After the Company is registered the Company is required to  file INC form 20 A for  commencement of business and to exercise borrowing powers. The subscribers has to deposit the subscription amount before filing the said form.

4. What we do:

• Consulting  services to select the most suitable form of organization, based on the business needs and objectives.
• Incorporation of Public Limited Company, Drafting MOA and AOA as per the requirement.
• Getting  all the needed registrations, approvals and licenses for  the commencement of operations like PAN, TAN, &  GST  and other Registrations
• Registration as Startup  under Start Up India, an initiative of Department for Promotion of Industry and Internal Trade, Government of India 

• Ensure  compliances with various corporate laws such as Companies Act, LLP Act and other Company Legislations   Foreign Exchange Management Act, Foreign Trade, Securities laws, Labour Laws and other  applicable laws.
• Getting the required approvals from Public bodies and Local authorities like Trade license, Shops and Establishment Registrations, Food license, Environmental Law approvals, MSME/UDYAM Registration with Ministry of  Micro, Small and Medium Enterprises (MSME) and SSI Registration.

If you want our support for registering a Public Limited Company in a cost effective and professional way   please click here