Public limited companies offer fixed deposits or have their shares listed on the stock market. Public limited company registration has all the benefits of a private limited company, including the flexibility to have an unlimited number of shareholders, simplicity in shareholding transfers, and more transparency. The firm must have a minimum of 3 directors, a minimum of 7 shareholders, a maximum of 50 directors, and Rs 5 lakhs in paid-up capital for public limited company registration in India. Through Lawgical India, Public Limited Company Registration is possible.
- Benefits
Shares are legally transferable documents under Indian law, facilitated by the Companies Act 2013 and stock market listings, with minimal compliance requirements.
Public corporations receive legal advantages in borrowing from banks and financial institutions. Registration as a public limited company enhances business credibility and recognition.
Shares can be listed on a stock exchange, requiring compliance. This facilitates secondary financing, so potential applicants should consider before registering online.
Directors and shareholders of a public limited company enjoy limited liability, shielding them from personal liability for the company's debts.
Features
Flexible Structure
Compared to other companies, a Public Limited Company has the most flexible structure of all. It enables a wide degree of operating and ownership independence.`
Stock Ownership
Employees may receive stock ownership or ESOPS from a public company. The ability to distribute shares to present and potential workers is only available to Limited Companies.
Stock Exchange Listing
On Indian stock exchanges like the National Stock Exchange (NSE), Bombay Stock Exchange (BSE), etc., only Public Limited Companies are permitted to list their shares. As a result, anyone can invest in the company by buying its stocks.
Fundraising through Initial Public Offerings IPOs
Under the 2013 Companies Act, only Public Limited Companies may receive public deposits. In this manner, the Company can raise additional funds for its commercial operations and size growth.
Service Notice
A public limited company's primary goal is to provide services to society. It might even have to suffer losses for this reason. However, it is expected that public companies will eventually turn a profit.
Autonomous Bodies
Public ltd companies in India are independent or somewhat autonomous bodies. They occasionally operate under the supervision of government agencies. In other situations, these businesses operate as corporations and companies under the law.
Flexible Structure
Compared to other companies, a Public Limited Company has the most flexible structure of all. It enables a wide degree of operating and ownership independence.`
Stock Ownership
Employees may receive stock ownership or ESOPS from a public company. The ability to distribute shares to present and potential workers is only available to Limited Companies.
Stock Exchange Listing
On Indian stock exchanges like the National Stock Exchange (NSE), Bombay Stock Exchange (BSE), etc., only Public Limited Companies are permitted to list their shares. As a result, anyone can invest in the company by buying its stocks.
Fundraising through Initial Public Offerings IPOs
Under the 2013 Companies Act, only Public Limited Companies may receive public deposits. In this manner, the Company can raise additional funds for its commercial operations and size growth.
Service Notice
A public limited company's primary goal is to provide services to society. It might even have to suffer losses for this reason. However, it is expected that public companies will eventually turn a profit.
Autonomous Bodies
Public ltd companies in India are independent or somewhat autonomous bodies. They occasionally operate under the supervision of government agencies. In other situations, these businesses operate as corporations and companies under the law.
Public Limited Company Registration In India - Eligibility Criteria
To register a public limited company following criteria are required by a public limited company to qualify for public company registration.
Public Limited Company Registration Online
Public limited company registration follows a similar procedure as private company registration. The processes listed below must be completed to register a public limited company
Filling The Form
The submission of a public limited company registration application form is completely online. It needs to be done via the relevant MCA portal. You need to upload all supporting documentation to the MCA portal.
Applying for DSC and DIN
Verifying the Name of the Company
In the third step of public limited company registration, the company name is verified by the Ministry of Corporate Affairs (MCA) to ensure uniqueness and compliance with intellectual property laws.
Filing SPICe Form
When the appropriate authorities have approved the public limited company’s name, the applicant will file the SPICe form to obtain the certificate of incorporation. The DIN number will also be assigned to the company’s directors when the applicant submits the SPICe form.
Submitting Documents
After completing the stages above, the applicant must submit the necessary paperwork to the MCA. The article of association and the memorandum of association are among the documents you must fill in with the appropriate authorities. The business must also include supporting paperwork, such as its mission, long-term goals, and objectives.
Incorporating the Company
The MCA and Registrar of Companies are responsible for issuing the public limited company’s certificate of establishment after confirming the public limited company registration process. This certificate serves as a proof-of-status legal document for the public limited company.
Opening a Bank Account
The last step of public limited company registration online involves opening a bank account in the public limited company’s name. It’s important to distinguish this bank account from opening a personal account. It must be open for conducting daily business on behalf of the organization.
Documents required for a public limited company registration process
FAQ's
Few doubts important to be resolved quickly
A public limited company is managed by its directors and owned by shareholders.
A minimum of seven members are required for a Public Limited Company registration. And a minimum of three Directors.
You won’t need to be present at our office or any other office for public limited company registration. Any document can be scanned and forwarded to our office via email. Additionally, you can send the remaining documents to us by courier.
A public limited company requires a minimum of Rs. 5 Lakh authorized capital to incorporate and a maximum however, the act prescribes.
Businesses are not obligated to become public eventually. Many companies operate exclusively in the private sector. Most companies who decide to become public limited companies have a strong management team and are thus in a good position to mitigate any risks associated with going public.
On average, registering a Public Limited company in India takes around 14-21 working days. It depends upon the document verification by the Ministry of Corporate Affairs (MCA).
