Overview
A Public Limited Company is a type of business entity that is registered under the Companies Act, 2013. Public Limited Company are those companies that are owned by public shareholders and the shares of the company are traded on stock exchanges. This means that the company can raise capital from the public through the sale of shares.
To set up a Public Limited Company in India, a minimum of 7 shareholders and 3 directors are required. There is no limit on the maximum number of shareholders. The liability of the shareholders in a Public Limited Company is limited to the amount of capital they have invested in the company. This means that the personal assets of the shareholders are protected in case of any liabilities of the company.
A Public Limited Company is managed by a board of directors, elected by the shareholders and it is required to comply with the regulations and laws set by the Indian government.
Overall, a Public Limited Company is a suitable business entity for those looking to raise capital (IPO) from the public and expand their business operations in India.
Minimum Requirements
01
New & Unique Name
In view of name guidelines under the Companies Act, 2013, you must have a new and unique name.
02
Minimum Seven Persons
- Register your company with at least 7 persons to act as the initial shareholders. .
- Minimum director required is 3 which can’t exceed 15 directors.
03
Registered Address
Company Premises can either be owned or rented.
04
Capital Requirement
Minimum capital requirement for a public limited company in India is Rs. 5 lakhs, as per the Companies Act, 2013.
Documents Requirements
Required in Soft Copy Only
Documents of Directors
-
PAN & AadharCard
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Other ID Proof Driving license, Voter Id or Passport
-
Address Proof Bank Statement or Utility Bills - E.g.- Electricity Bill / Water Bill / Property Tax
-
Colour Photo
-
Email id and Mobile Number
Required in Soft Copy Only
Business Address Proof
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Address Proof (owned) Sale Deed ( Ownership Documents), Electricity Bill / Propert Tax
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Address Proof (Rented) Rent Agreement , Electricity bill, NOC from Owner of the premises
Advantages
Separate Legal Entity
A Public Ltd is a separate legal entity from its shareholders, which means it can enter into contracts and own assets in its own name.
Perpetual Succession
It has a perpetual succession, meaning it continues to exist regardless of changes in shareholders or directors.
Professional Management
A public limited company can hire professional managers to run the company’s operations, which can bring in expertise and experience to help the company grow and expand.
Branding and Reputation
A public limited company is a well-established legal entity and is often perceived as more reputable and trustworthy than other types of companies.
Limited liability of Shareholders
Since company is a separate entity, the liabilty of shareholders is restricted to the subscribed Share Capital.
Fund Raising
A public limited company can raise capital by issuing shares to the public. This makes it easier for the company to raise large amounts of capital for expansion, research and development, and other business activities.
Transfer of Ownership
Shares of a public limited company are freely transferable, which allows for easy transfer of ownership and exit by shareholders.
Greater Credibility
A public limited company is required to comply with various legal and regulatory requirements such as filing annual reports, conducting annual general meetings and maintaining proper books of accounts, which enhances transparency and accountability.
Steps
Verification of Documents provided for incorporation by you. And application for DSC.
Application for Name approval
Drafting of MOA and AOA
Filing of SPICE + Form
Once SPICE + form got approved , ROC issue Certificate of Incorporation.
Your Takeouts
DIN for 3 Directors
DSC for 3 Directors
Certificate of Incorporation (CIN)
Memorandum of Association and Article of Association
E- PAN of Company
E- TAN of Company
Professional Tax Registration
( In Maharasthra )
GST Registration ( If required seperately chargeble )
Shop and Establishment
Registration
Compliances
To promote transparency, sound governance, and safeguard the interests of all stakeholders, certain compliance requirements and related filings must be fulfilled within established timelines.
Our company assists in fulfilling these obligations with ease and efficiency. Compliance requirements can be broadly categorized into four types
For further details and expert guidance, kindly seek the consultation of our seasoned startup consultants.
One Time Compliances
One Time after incorporation like appointment of Auditor, Declaration for Commencement of business, Issuance of share certificate etc
Event Based Compliances
Change of Directors, Change of regd. Address,Allotment of shares etc.
Regular Compliance
Accounting , Tax Filing , Maintenance of records and registers etc
Annual Compliance
ROC Annual filing, Audit of financial statement, ITR filing etc
Frequently Asked Question
1. Private limited company
2. Public limited company
3. Limited liability Partnership
4. One person company
5. Nidhi Company
6. Producer Company
7. Section-8 Company
2. Public limited company
3. Limited liability Partnership
4. One person company
5. Nidhi Company
6. Producer Company
7. Section-8 Company
A Director Identification Number (DIN) is a unique identification number assigned to an individual who has been appointed or proposed to be appointed as a director of a company in India. This number is assigned by the Ministry of Corporate Affairs (MCA) and is used to track and maintain records of all directors of companies registered in India.The process of obtaining a DIN involves submitting an application to the MCA along with the required documents and paying the relevant fee. The DIN once obtained is valid for the lifetime of an individual, and it is not required to renew it.
A Digital Signature Certificate (DSC) is an electronic document that is used to verify the identity of an individual. It is issued by a Certifying Authority (CA) and contains the user's name, a serial number, expiration dates, a copy of the user's public key, and the digital signature of the issuing CA. DSCs are used to digitally sign electronic documents and transactions, such as e-filing of income tax returns, e-tendering, and e-procurement. It is similar to a physical signature but is used in the digital world.
A Corporate Identification Number (CIN) is a unique 21-digit alpha-numeric code assigned by the Registrar of Companies (ROC) to a company at the time of its incorporation. It is used to identify a company and its various records with the Ministry of Corporate Affairs (MCA) in India, who is responsible for the administration of the Companies Act.
The CIN is made up of three parts:
1. The first two characters represent the 'industry classification code' which identifies the type of industry the company belongs to.
2. The next five characters represent the 'location code' which identifies the state and the ROC where the company is registered.
3. The last 14 characters represent the 'incorporation number' which is unique to each company.
CIN is a permanent number for a company and it does not change even if the company changes its name or location. It can be used to track the company's registration, compliance, and financial status on the MCA's website. It is also used in various other government and non-government transactions.
The CIN is made up of three parts:
1. The first two characters represent the 'industry classification code' which identifies the type of industry the company belongs to.
2. The next five characters represent the 'location code' which identifies the state and the ROC where the company is registered.
3. The last 14 characters represent the 'incorporation number' which is unique to each company.
CIN is a permanent number for a company and it does not change even if the company changes its name or location. It can be used to track the company's registration, compliance, and financial status on the MCA's website. It is also used in various other government and non-government transactions.
The Memorandum of Association (MOA) is a legal document that sets out the constitution of a company. It serves as the company's charter and outlines the company's objectives, the capital it intends to raise, and the nature of its business. The MOA is one of the primary documents required to be filed with the Registrar of Companies at the time of incorporation of a company.
The MOA includes details such as the company's name, registered office address, the main objects of the company, the authorized share capital, and the names and addresses of the subscribers (i.e. the individuals who have agreed to take shares in the company). It also includes any objects which are ancillary or incidental to the attainment of the main objects, and any other powers that the company may have.
It is important to note that MOA is a public document and can be inspected by anyone on payment of prescribed fees. It is also important to review and update the MOA if there are any changes in the company's objectives or capital structure.
The MOA includes details such as the company's name, registered office address, the main objects of the company, the authorized share capital, and the names and addresses of the subscribers (i.e. the individuals who have agreed to take shares in the company). It also includes any objects which are ancillary or incidental to the attainment of the main objects, and any other powers that the company may have.
It is important to note that MOA is a public document and can be inspected by anyone on payment of prescribed fees. It is also important to review and update the MOA if there are any changes in the company's objectives or capital structure.
The Articles of Association (AOA) is a legal document that sets out the internal regulations governing the management and operation of a company. It is one of the two key documents required for the incorporation of a company, along with the Memorandum of Association.
The AOA typically includes provisions regarding the company's objectives, the powers and duties of the directors, the rights and duties of the shareholders, the authorized share capital and the procedures for issuing and transferring shares. It also includes provisions on how the company will be run, including the procedures for holding meetings, appointing directors, and making decisions.
It is important for companies to draft their AOA carefully, as it can have significant implications for the company's operations and management. Our Expert Team at SureTax Fincare will provide you legal advice when drafting or amending their AOA to ensure compliance with applicable laws and regulations.
The AOA typically includes provisions regarding the company's objectives, the powers and duties of the directors, the rights and duties of the shareholders, the authorized share capital and the procedures for issuing and transferring shares. It also includes provisions on how the company will be run, including the procedures for holding meetings, appointing directors, and making decisions.
It is important for companies to draft their AOA carefully, as it can have significant implications for the company's operations and management. Our Expert Team at SureTax Fincare will provide you legal advice when drafting or amending their AOA to ensure compliance with applicable laws and regulations.
Authorized share capital, also known as authorized capital or registered capital, refers to the maximum amount of common stock that a company is legally authorized to issue and it is usually mentioned in the Memorandum of Association (MOA) and the Article of Association (AOA) of the company.
Paid-up capital, also known as subscribed capital, is the amount of money that shareholders have actually paid to the company in exchange for the shares they own.It is the total amount of money that shareholders have invested in the company by purchasing shares at the time of incorporation or later.
Paid-up capital is an important measure of a company's financial strength, as it represents the amount of equity that shareholders have invested in the company.
The company can only issue shares up to the authorized capital limit, in this case, the paid-up capital would be less than the authorized capital.
Paid-up capital is an important measure of a company's financial strength, as it represents the amount of equity that shareholders have invested in the company.
The company can only issue shares up to the authorized capital limit, in this case, the paid-up capital would be less than the authorized capital.
It stands for Simplified Proforma for Incorporating Company Electronically Plus.It is a new simplified form for incorporating a company in India and obtaining various statutory approvals and registrations in a single form.
It can be used for incorporating a new company, incorporating a One Person Company (OPC), incorporating a Small Company and incorporating a Producer Company.The SPICe+ form can be used to incorporate a new company, obtain a PAN, TAN, and GST registration, and obtain a DIN for directors in a single form.
It can be used for incorporating a new company, incorporating a One Person Company (OPC), incorporating a Small Company and incorporating a Producer Company.The SPICe+ form can be used to incorporate a new company, obtain a PAN, TAN, and GST registration, and obtain a DIN for directors in a single form.
A prospectus is a legal document that provides potential investors with important information about a company's financial condition, business model, products and services, management team, risks involved, and other relevant information to help them make an informed decision about investing in the company.
The prospectus is required by securities regulators and stock exchanges as part of the process of going public or issuing new securities. It must be filed with the relevant regulatory body and made available to the public, typically through the company's website or other public platforms.
The prospectus is required by securities regulators and stock exchanges as part of the process of going public or issuing new securities. It must be filed with the relevant regulatory body and made available to the public, typically through the company's website or other public platforms.
Yes, NRIs (Non-Resident Indians) and foreigners can hold shares in a public limited company in India. The Indian government has made it possible for NRIs and foreigners to invest in Indian companies through the Foreign Exchange Management Act (FEMA) and the Foreign Direct Investment (FDI) policy.
However, there may be some restrictions on the percentage of shares that can be held by NRIs and foreigners in specific sectors. It is recommended to consult with our expert team at Sure Tax Fincare, to understand the specific regulations and compliance that needs to be followed.
However, there may be some restrictions on the percentage of shares that can be held by NRIs and foreigners in specific sectors. It is recommended to consult with our expert team at Sure Tax Fincare, to understand the specific regulations and compliance that needs to be followed.
Yes, a salaried person can become a director of a company in India. However, there are certain qualifications and disqualifications that must be met under the Companies Act, 2013.
Yes, a public limited company in India can carry on more than one business under a single name. It's also worth noting that, the company's Memorandum of Association (MOA) and Article of Association (AOA) should specify the business activities of the company, and in case of change of business activities the company is required to file the relevant forms with the Registrar of Companies (ROC) and get the MOA and AOA amended accordingly.
Yes, a public limited company can be listed on a stock exchange, which means that its shares are publicly traded and available for purchase and sale by investors through the stock exchange. Listing on a stock exchange provides the company with access to a wider pool of investors and capital, as well as increased visibility and credibility.
IPO stands for Initial Public Offering. It is the process by which a private company offers its shares to the public for the first time and becomes a publicly-traded company. The purpose of an IPO is to raise capital by selling shares to a large number of investors, typically through an underwriting process managed by investment banks. The shares are then traded on a stock exchange, providing liquidity to the shareholders and potentially increasing the value of their investments.
When selecting a name for a public limited company, it is important to ensure that the name is not already in use by another company and that it does not infringe on any trademarks or service marks. Additionally, the name should be consistent with the company's business and should not contain any restricted or sensitive words.
Examples of restricted or sensitive words that should not be included in a company name are: "National", "Government", "Engineer", "University", "Charity", "Trust", racial slurs or profanity. However, it is important to check with the relevant government registrar of companies for a comprehensive list of restricted words in your area.
Examples of restricted or sensitive words that should not be included in a company name are: "National", "Government", "Engineer", "University", "Charity", "Trust", racial slurs or profanity. However, it is important to check with the relevant government registrar of companies for a comprehensive list of restricted words in your area.
As per the rule, the company is required to deposit the minimum prescribed share capital with the bank, within 180 days from the date of incorporation. If the company is not able to deposit the share capital within 180 days from the date of incorporation, the company would be considered as dormant and the Registrar of Companies can strike off the name of the company from the register.
It's highly recommended to seek the guidance of our professional experts at Sure Tax Fincare, to ensure compliance with the regulations and laws.
It's highly recommended to seek the guidance of our professional experts at Sure Tax Fincare, to ensure compliance with the regulations and laws.
As per the Companies Act, 2013, it is mandatory for every public company to appoint an auditor within 30 days of its incorporation, and to hold annual general meetings to appoint auditors for the following financial year. The company must also appoint a company secretary who must be a whole-time employee of the company and hold a valid certificate of practice from the ICSI. The company must also comply with other legal requirements related to the appointment, remuneration, and removal of auditors and company secretaries.