Public Limited Company

Registration of a Public Limited Company

Incorporating a Public Limited Company is a suitable option for large scale businesses that require huge capital. There should be a minimum of seven members with no limit on maximum number of members/shareholders for starting a Public Limited Company.

Usually, Public Limited Companies get listed with stock exchanges to raise capital from the general public. This is why Public Limited Companies have to comply with multiple regulations of the government and starting a public limited company becomes a cumbersome process.

RELATED GUIDES

  • How to Register a Public Limited Company in India?
  • Convert Private Company to Public Limited Company
  • How to Convert a Public Limited Company to a Private Company?
  • Why people opt for Private Limited Company?
  • FDI for Private Limited Companies in India
  • What is a Public Limited Company?

A Public Limited Company is defined under Section 2(71) of the Companies Act, 2013 as:

a company which is not a private company a company with a minimum paid-up share capital of INR 5 lakhs.

Note : Under the Companies Act, 2013, a subsidiary company shall be deemed to be a public company if it is not a subsidiary to a private company, even if it is a private company as per its articles.

What are the Requirements for Incorporating a PLC?

Minimum Paid-up share Capital INR 5 lakhs
Minimum number of Directors 3
Maximum number of Directors 50
Minimum number of Shareholders 7
Maximum number of Shareholders No Limit

  • Passport sized photographs of all the Directors
  • Copies of the Identity documents of all the Directors- Aadhar Card, Voter Card, PAN card
  • DSC (Digital Signature Certificate) of all the Directors
  • DIN (Director Identification Number) of all the Directors
  • In case the office is in a rented property – the rent agreement
  • In case the office is an owned place – the property ownership documents
  • The water bill and the electricity bill of the business place
  • No Objection Certificate by the Landlord
  • Memorandum of Association (MoA)
  • Articles of Association (AoA)

It is necessary that all the documents pertaining to registration of a Public Limited Company are in order to avoid any legal complications later on.

  • Fulfilling all the Legal Requirements for Incorporation

    First off, it is necessary that the legal requirements of minimum-paid up share capital, number of directors, number of shareholders, have been identified and fulfilled. Only if this step is complete, further steps of registration can be implemented.

  • Obtaining DIN and DSC for all the Proposed Directors

    Once it has been established who all would be the directors of the company, their DIN from the Ministry of Corporate Affairs and DSC from the Certified Authority has to be obtained.

    The directors can only be individuals and not entities like LLPs or Financial Institutions. Also, the number of directors cannot exceed 50. It is not necessary for the Director to be the Shareholder of the Company

  • Registered Office

    It is necessary to have a proper address to be recognized as the Registered Office of the Company. The Registered Office address has to be registered with Registrar of Companies (ROC) under whose jurisdiction the office location falls. All the correspondence related to business are made to the Registered Office by the ROC. The fee for registration shall be dependent on the authorized capital of the company.

  • Application for Company Name

    Prior to the registration procedure, the name of the Company has to be approved by the ROC. It is mandatory that the name of the Public Limited Company ends with the word “Limited”. This application is filed in the RUN form of the Ministry of Corporate Affairs. It is better to provide a list of names in order of preference, in case a particular name is not available.

  • Execution of Company Registration Documents

    Once the name of the Company has been approved, the crucial documents of the Company – MoA and AoA have to be executed. These documents have now gone electronic and can be prepared and submitted there itself. (eMoA: INC33 & eAoA: INC32)

  • Submission of Documents to ROC

    Once all the documents have been prepared, they are submitted to the ROC for verification.

  • Registration and COI

    Upon proper verification of all the submitted documents, the ROC registers the company and issues a Certificate of Incorporation along with the CIN (Corporate Identification Number) of the Company.

  • Certificate of Commencement of Business

    A Public Limited Company cannot start its business immediately upon receiving the COI. It has to apply for Certificate of Commencement of Business within 180 days of receiving the COI, stating that all the subscribers have paid the subscription money.