Understanding Public Limited Company
A public limited company is a joint member association that can be made up of seven or more persons. It has a distinct legal life, apart from the members that establish it. It must have at least seven members, although there is no limit to the maximum number. Its shares are freely transferable without the prior approval of any shareholder. It is an independent legal individual and is not affected by the death, resignation, or insolvency of its shareholders. These companies will call on the public to obtain capital and deposits. These companies may or may not be listed as such.
Eligibility for public limited company
Minimum Seven Persons :
In India, a public limited company must be set up by a minimum of seven people. They shall have at least three directors. They may be shareholders and directors of the company of the same seven individuals. Nevertheless, as many as possible people in the limited partnership will become shareholders.
Minimum Capital :
One Resident Director :
Specific Name :
Necessary documents for public limited company registration :
Identity proof of Directors and Shareholders
- PAN Card for Indian Nationals (Mandatory)
- Passport for Foreign Nationals (Mandatory)
- Proof of nationality for Foreign Nationals
- Proof of Identity (Voter ID/Passport/Driving License) (any one)
- Resolution of the board of company / LLP for authorization of director/partner
- 2 Passport size photos.
Address proof of Directors and Shareholders
- Bank statement/Electricity/Telephone/Mobile bill) (not older than two months) (any one)
Proof of Registered office
- Conveyance/ Lease deed/Rent Agreement etc. along with rent receipts (any one)
- Copy of the utility bills (Telephone/Gas/Electricity bill) (not older than two months) (any one)
- NOC from Landlord
Other Documents
- DSC form (physically signed)
Procedure of public limited company registration :
Name reservation
Reserving/approving a business name is the first step in incorporation. No terms forbade under the Companies Act, 2013 should be included with the chosen proposed name. For a new corporation, an approved name shall be valid 20 days from the date of approval. Two names and one resubmission (RSUB) can be requested when the organization is reserving Unique Names through the RUN web service.
Director's Digital Signature Certificate (DSC)
The application for a limited public company is filed electronically and must, as a matter of duty, be signed by the company's manager and shareholder. Therefore, before submission of the company's incorporation application, DSC must take over from the directors and shareholders of the company who are expected to sign the e-form for registration. DSC application form must be accompanied by the photo, ID and address proof.
Obtain ID Number (DIN)
DIN is the unique ID of the director who is provided by the Company Registrar (ROC) to become a director in India. A request is sent along with CS/CMA/CA proven ID and Address Evidence.
Approval of other authorities
The Registrar of Companies may require the applicant to furnish the approval or concurrence of any department,regulatory body, appropriate authority, or Ministry of the Central or State Government(s) in relation to the work to be done.
Document submission
Application for registration/incorporation of public limited company is made to Registrar of Companies (ROC) along Memorandum and Article of Associations, declaration, affidavits etc. Minimum Seven persons are required for incorporation of public limited company.
Incorporation certificate
ROC then checks the registration form and records, when ROC deems the documents to be in order, granted an Incorporate Certificate, a certificate of registration of public limited undertaking. The public limited company shall start its business after obtaining the Incorporation certificate.
Corporate PAN & TAN
PAN and TAN are applied with the company registration form and issued along with the corporate certificate and with references to a corporate certificate at the same time.
Opening of the Bank Account
When submitting a Company Certificate and other important documents, the bank opens the company's current account needed to run the business smoothly.
