Public Limited Company Registration

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.

The following are reasons why a public limited company registration is beneficial

1. Easy to Transfer shares:

Shares are legally binding documents that are easy to transfer according to the Indian Contract Act 1872. These instruments are easily transferable under the Companies Act 2013, with just a few compliance requirements. A listing of shares in a stock market also makes it simpler to transfer shares from one party to another.

2. Increased Capacity for Borrowing:

The law favours public corporations when borrowing money from banks and other financial organizations. A public limited company registration would give the extra benefit of the business recognition.

3. Shares of a public limited company can be listed on a stock exchange:

Shares may be listed on a stock exchange. However, the public limited company must comply when listing its shares on a stock exchange. The public limited company might raise secondary financing using this approach. Therefore, a potential applicant must consider all the above points before a public limited company registration online.

4. Separate Legal Entity:

The directors and shareholders (members) of a public limited company benefit from the idea of a separate legal entity. It indicates that the directors' and members' liability is strictly limited to a particular amount. If the public company owes any obligations, creditors may not contact the members.

To register a public limited company following criteria are required by a public limited company to qualify for public company registration.

• A public company must have a minimum of seven shareholders to register as a public limited company.
• A public company must have a minimum of three directors for a public limited company registration.
• For electronically and digitally signing papers, at least one of the directors must possess a Digital Signature Certificate (DSC).
• All directors of a proposed company must obtain a DIN (Director Identification Number) to get public limited company registration online.
• It is necessary to submit an application that includes the company's primary object clause. It also discusses in full all the endeavors the organization will undertake following its incorporation.
• You must apply for the ROC (Registrar of Companies) and other necessary paperwork, such as an MOA and an AOA.

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:

Step 1: Filing 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.

Step 2: Applying for DSC and DIN:

The applicant must apply for a Director Identification Number and Digital Signature Certificate in the second step of public company registration. The digital signature certificate guarantees authenticity for processing the documents online. In addition, the DSC supports electronic signatures as per the act's requirements. The company might hire a minimum number of directors to fulfill the requirements of a public limited company by applying for a DIN.

Step 3: Verifying the Name of the Company:

A public limited company registration process's third step is verifying its name. According to the Ministry of Corporate Affairs' regulations, the company's name is reviewed and verified (MCA). The company name cannot be interchangeable with any other name. In addition, there must be no violations of Indian intellectual property law in the company name.

Step 4: 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.

Step 5: 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.

Step 6: 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.

Step 7: 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.