How to Register a Public Limited Company in India

How to Register a Public Limited Company in India

Public Limited Company Registration

If you have small investment and want to start a business, you can probably start a proprietorship company. But if you want to start a company like a car company or a manufacturing company with a huge investment, you need to incorporate as a public limited company and raise public funding to run a successful business.

This guide will help you understand how to register a public limited company in India. I will explain how to incorporate a public limited company, how to manage it, the requirements, the benefits, and the drawbacks in detail. My primary goal is to assist young entrepreneurs in running a profitable business without legal problems.

What is a public limited company?

Public Limited company is a separate entity created under Indian laws. This type of company’s capital is dispersed in the form of shares and collected as a public investment. Share markets such as the Mumbai Stock Exchange (BSE) and the National Stock Exchange (NSE) distribute these shares to the general public (NSE).

The general public can buy or sell shares based on market conditions. We call it a “public limited company” since the money is raised from the general public. Large-scale industries are best suited for this type of business.

The Advantages of a Public Limited Company

There are several benefits to being a public limited company.

  1. Credibility: If you manage a public limited company, you can get credibility from your investors, vendors, and customers. This credibility will drive your company forward and boost its chances of success.
  2. Improved Fund: You can raise money (investment) from the general public.
  3. Limited Liability: Another advantage of having a public limited company is the “limited liability.” Every business has its own set of risks, but with limited liability, your personal assets will be protected in the event of any losses or damage.
  4. Listing in Stock Exchange: Listing your company on the stock exchange allows you to raise capital from the general public. You can only list your company on the stock exchange if it is a public limited corporation.
  5. Grow Big: Enhances your ability to develop and grow large.

Requirements for Registering a Public Limited Company

Here is the requirement that you should keep in mind when registering a public limited company.

  1. There must be a minimum of 7 stockholders.
  2. There should be three directors. Shareholders can also join the board of directors. If foreign nationals are involved, an Indian should be at least one of the directors.
  3. A minimum capital of 5 lakhs is required.
  4. Digital Signature Certificate (DSC). Any one of the directors’ DSC.
  5. Director’s.DIN will be required.
  6. Submission of the application to the ROC along with the MOC, AOA, and duly completed forms DIR–12, INC–7, and INC–22.
  7. Office space that has been registered (rental, lease or own).

Registration Process

The entire registration process takes place online.

Step 1: Submit an application for a digital signature certificate (DSC).

A Digital Signature Certificate (DSC) is a form of electronic approval from the authorized person. It can be used to file income tax returns, e-tenders, and a variety of regulatory filings. You can apply through a certifying authority in India that is authorized to issue digital certificates. The steps are as follows:

  1. Form submission
  2. Online documentation
  3. Fee payment

To obtain a DSC for an Indian organization, you must provide the following documents.

  • Pan Card for the Organization
  • Deed of Partnership
  • List of authorized signatories such as directors, board members etc.
  • Authorized signatory’s photo ID
  • Certificate of GST

To obtain a DSC for a foreign individual or organization, you must submit the following documentation.

  • Passport of the applicant (attested copy).
  • Visa attested copy (if the applicant is out of their native country).
  • Resident permit certificate (attested copy) if the applicant is in India.
  • Any Govt-issued address proof (attested copy).

Step 2: Obtain Director Identification Number (DIN)

A DIN is a unique identification number issued by the government of India to the directors of a company. A valid DIN is required for all company directors. A company cannot appoint a director without a DIN.

To obtain a DIN, you must provide the following documents.

  • A Photograph of the applicant
  • Proof of identity: For Indians, a Pan card is required, while for foreign nationals, a passport is required.
  • Address proof is required.
  • Digital Signature Certificate: It is required to obtain a Directors’ Indentification Number (DIN) since all the above documents must be signed with a digital signature.

DIN does not need to be renewed because it is valid for life.

Step 3: Registration on the MCA Portal

To submit the SPICe+ form and other relevant documentation, the director must first register on the MCA portal. The director will have access to the site and e-filling forms once the registration process is completed.

How to Register Public Limited Company in India

Step 4: Certificate of Incorporation

The Registrar of Companies (ROC) will validate the document and provide a Certificate of Incorporation of the Public Limited Company after the registration is complete.

Required Documents of Incorporation are:

  • Proof of Identity and Address: Pan card, Adhaar card, passport-size photo, and two-month bank statement of directors and shareholders as proof of identity and address.
  • Director Identification Number (DIN) of all the directors.
  • Digital Signature Certificate (DSC) of all the directors.
  • Memoradum of Association (MOA)
  • Article of Association (AOA).
  • The office space’s EB bill, rental deed, or lease agreement.

These are the steps to register a public limited company in India.

Company Registration: Frequently Asked Questions

1. How long does it take to register a business?

It will take 10 to 15 days to register a company after all the documents have been submitted.

2. Is it possible for me to register my company online?

Yes, you may complete the entire process online. A physical presence is not required to register a company. The certificate of incorporation will be sent to your business email address.

3. Where can I register my company online?

To register a company in India, go to the Ministry of Corporate Affairs (MCA) website and fill out an application. Visit https://www.mca.gov.in/mcafoportal/loadUserRegistration.do?link=loadUserRegistration to access the portal. Before you begin applying online, make sure you have a Digital Signature Certificate (DSC) and a Director Identification Number (DIN).

4. What if the name of my company isn’t available?

You can check if your business name is already in the MCA directory. If your company name has already been registered, you may need to file a new application.

5. How to register a private limited company in India?

You can easily register a private limited company with this step by step tutorial.

Summary

Under Indian law, a public limited company is a separate legal entity. This sort of company’s capital is dispersed in the form of shares and collected as a public investment. You can register your company as a public limited company if you intend to start a large-scale industry. I hope this information has helped you understand how to register a public limited company in India. If you have any further queries, please leave them in the comments section below. I will surely respond to you.

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