How To Register Public Limited Company for Startup Business

The Existence of Public Limited Companies (PLC) in India are held by the Companies Act 2013. Generally, large business entities choose to incorporate their organization as Public Limited Company. It comes with limited liability and can sell the shares of the company publicly by registering it in the Stock Exchanges.

Public Limited Companies regulated rigorously by the rules and regulations as declared in the Companies Act 2013. They must declare their financial status to each and every shareholder. For this purpose, they made the requisite information available on public domains.

Opportunities of Public Limited Company

Public Limited Company registration is advisable to all large business conglomerates. PLCs enjoy a greater number of benefits, than any other types of organizations. Let’s look into the advantages of the Public Limited Company.

• More Investment

As the shares of the Public Limited Company can be sold publicly, it will garner more investment. All PLCs have listed themselves on the Stock Exchanges to sell their shares and invite potential investors.

Any individual can invest their money on the Public Company by purchasing their shares. This way the PLC can earn more capital and use them to make progress, get growth.

• Distinguished Profile

Having the word “Public Limited” at the end of your Company name is generally encouraging. Whether you agree or not it signifies the distinction of the company than any other type of organization (e.g., Private limited).

The perception of PLCs in general public is like a high profile institution. People are more likely give importance to the PLC other than any Pvt. Ltd. Company. Enlisting in the Stock Exchanges makes it more credible to the general public.

• Transfer of Shares

In a Public Limited Company, the transfer process of shares is easy and simple. As per the rules and regulations stated in the Company Law, the shares and debentures of the company are easily transferable at any time.

• Expansion and Extension facility

A Public Limited Company can take easy initiatives to expand and extend its business facility as it require. Gaining more capital from the public investment methods makes it easier to do so. It can grow with the below mentioned measurement plans.

• Seek after new activities, new items or new business sectors.

• Involves in Research and Development (R&D) works.

• Make acquisitions (regardless of whether in real money or by offering offers to the investors of the objective business).

• Make the use of capital to help and upgrade the business.

• Pay off existing obligation (or supplant existing obligation with the new obligation on better standing).

Requirements of Public Limited Company Registration

If anyone is interested in registering his/her business as Public Limited Company, must take some prerequisite measurements that are listed below.

• Name of the Company

The Public Limited Company must include the appendix “Public Limited” at the end of the company name. The name itself must be unique and not similar to any other company already existed.

• Membership Norms

Public Limited Company can be initiated with a minimum of 7 members or shareholders. There is a no maximum limit for the membership is specified.

• Directorship Norms

Minimum 3 numbers of Directors are mandatory to start a Public Limited Company. And, at least one director must be Indian citizen.

• Object of the Company

The object or the purpose of the company must be declared in proper documentation. The main business activity should be included with its name. It’s better to have an all-rounder profile rather the concentrating on a particular field in the company purpose declaration.

• Capital

The share capital of ₹500,000 is needed to apply for Public Company Registration.

• DSC and DIN mandatory

Digital Signature Certificate (DSC) and DIN (Director Identification Number) is mandatory here. Hence people must obtain DSC for all of the registered members and DIN for all of the Directors of the future Public Limited Company.

• MOA, AOA and other Documents

People need to prepare submit Memorandum of Association (MOA), Articles of Association (AOA), Form INC-7, INC-22 and DIR-12 to the Registrar of Companies (ROC).

Documents Requirements for Registration

• People need to prepare the important documents that are required to submit at the time of their formation Public Limited Company.

• ID proof credentials are mandatory for all of the company members/shareholders and Directors.

• PAN Card details of all Company Directors and Members.

• Address proof of the Company office location (Utility Bill, electricity Bill, Telephone Bill etc). If the company is situated on a rented land, then Rent Agreement or Rent receipt and NOC from the land owner is must.

• DSC and DIN for the members and Directors (whichever is applicable) as previously mentioned.

• MOA and ROA of the Company as earlier specified.

Registration Process of Public Limited Company

1. Get DSC for the members and DIN for the Directors.

2. Apply for the Company Name at ROC. Take the online RUN (Reserve Unique Name) module to get proper ideas.

3. Prepare and submit Company incorporation credentials like MOA, AOA, SPICe+ form, and other documents to the ROC.

4. Get Certificate of Incorporation from the ROC upon the verification of all the credentials that are previously mentioned here.

5. Apply for PAN (Permanent Account Number) and TAN (Tax Account Number) for the newly registered Public Limited Company.

6. Open Current Account in any registered Bank in India.

After the successful completion of the above mentioned procedures, you can now start doing your business as Public Limited Company.