Public Limited Company Registration

Going public' really means setting up a public limited company. Being a public company allows a firm to sell shares to investors this is beneficial in raising capital. A minimum of three Directors are required for establishing a Public Limited Company and it has more stringent regulatory requirements compared to a Private Limited Company. A public limited company has most of the characteristics of a private limited company. Identifying marks of a public limited company are name, number of members, shares, formation, management, directors and meetings, etc

1. Minimum Requirements

  • Minimum Seven People: Minimum seven people are required to start the public limited company in India. These companies shall have minimum three directors. The same seven people can become shareholder and director of the company. However, maximum any number of people can become shareholder in the public limited company.

  • No Minimum Capital: Capital of the business is depending on the need of the business and statutory no minimum capital is required to start the public limited company. However, minimum authorized and subscribed share capital required for public company is Rupees five lakh.

  • One Resident Director: Among director, one person must be resident Indian.

 

2. Documents Required for Public Limited Company Registration

  • Proposed Name of Company​​ (Unique Name: The name of the public limited company should be unique and should not be similar to the any existing company name or trademark.)

  • Company Business Object

  • Identity proof of Directors and Shareholders

  • PAN Card for Indian Nationals (Mandatory)

  • Passport for Foreign Nationals (Mandatory)

  • Proof of nationality for Foreign Nationals

  • Proof of Identity (Voter ID/Passport/Driving License) (any one)

  • Resolution of the board of company / LLP (If Company/LLP proposed to subscribe share) for authorization of director/partner

  • 2 Passport size photos.

  • Address proof of Directors and Shareholders

  • Bank statement/Electricity/Telephone/Mobile bill (not older than two months) (any one)

  • Mobile & Email – For DSC verification

  • Proof of Registered office

    • Conveyance/ Lease deed/Rent Agreement etc. along with rent receipts (any one)

    • Copy of the utility bills (Electricity Bill, Telephone Bill, Water Bill, Gas Bill) (not older than two months) (any one)

    • NOC from Landlord

 

Note: All the Documents in case of Foreign Director should be additionally complied as follows:

  • Notarized (if residing in commonwealth countries)

  • Notarized & Apostiled (if residing in country which is signatory to Hague convention)

  • Notarized & Consularised (If not covered in above categories)

 

3. Advantages of Public Limited Company Registration

  • Larger amount of capital: Public limited companies can bring more capital as compared to other form of organization. There can be unlimited number of shareholders, who can contribute to the capital of the public limited company.

  • Efficient management: Public limited company is more efficiently managed entities as compared to other form of organization. These have larger pool of talented people, who contribute in efficient management of public limited company.

  • Free transfer of shares: The shares of a public limited company are freely transferable and that too without the prior consent of other shareholders, as compared to private limited companies.

  • Larger Borrowing Power: Public companies are most recognized in terms of financial assistance/borrowing from banks and financial institution and also there are several financial instruments available to public limited companies, which are not available to other form of business organization.

  • Limited Liability of shareholder: Liability of shareholders of the public limited company are limited only up to the shares subscribed by them and should not be personally liable for the debts of the company in case company are unable to pay its liabilities.

  • Separate Legal Entity: Public limited company legal entity are separate than its shareholders/promoters.

  • Perpetual Existence: Public limited company existence will go for ever and its existence will not be effected by the death of shareholders, directors or transfer of shares to others.

  • Capacity to Sue and to be sued: Public limited company can take legal action against another and also other person can take legal action against company separate from directors, shareholders & promoters.

  • Ownership of property: Public limited company can sale, purchase and own the property like individual.

 

4. Annual Compliances

  • Annual Return: Every Small Company will file its Annual Return within 60 days of holding of Annual General Meeting. Annual Return will be for the period 1st April to 31st March.

  • Financial Statement: Company is required to file its Balance Sheet along with Statement of Profit and Loss Account, Cash Flow Statement and Directors’ Report in this form.

    • Attachment: Balance Sheet, Statement of Profit& Loss Account (Including Consolidated Financial Statement), Director Report, Auditors’ Report, Cash Flow Statement and Notice of AGM.

  • Adoption of Financials and Director Report: Company will file MGT-14 along with copy of Board Resolution within 30 days of Board Meeting.

  • Certification of Annual Return: Every Company having paid up share capital of 10 Crore or more or turnover of Rs. 50 crore or more shall be certified by a Company Secretary in Practice.