Under the Company Act 2013, a public limited company is one that has limited liability and sells shares to the general public. Anyone can buy its stock, either privately through an initial public offering (IPO) or publicly through stock market exchanges. It is appropriate for major entities that require a significant amount of capital and for entrepreneurs who are planning for large-scale business operations. A Public Limited Company is governed by tight rules and is obligated to disclose its genuine financial condition to its shareholders.
A public limited company must have at least 3 directors, 7 shareholders, and a maximum of 50 directors, as well as Rs 5 lakhs in paid-up capital. A public limited company has all of the benefits of a private limited company, including the opportunity to have an unlimited number of members, simplicity of shareholding transfers, and increased transparency.
The following requirements must be satisfied in order to register as Public limited company: Minimum 3 Directors & Minimum 7 Shareholders Minimum of 5 lakh rupees is required for share capital One of the Directors must be Indian Resident DIN (Director Identification Number) for all Directors DSC (Digital Signature Certificate) for all the subscribersMinimum Requirements
Below is the process of registering your business as Public Limited Company-
Because the formation of a public limited company is a completely digital process, a Digital Signature Certificate is a need. Directors and subscribers to the company's memorandum of incorporation must apply for a DSC from one of the certified agencies. Obtaining a DSC is a simple online process that may be completed in as little as 24 hours. Document verification, video verification, and phone verification are the three simple verifications involved in this process.
The SPICe RUN form, which is part of the SPICe+ form, can be used to apply for a name for a public limited company. The company's industrial activity code and object clause must both be defined while completing the name application.
After the name has been approved, the company's registration details must be written in the SPICe+ form. It is a simple proforma for electronically forming a company. The following are the form's details:
The SPICe e-MoA and e-AoA are two related forms that must be completed at the time of company registration.
Section 2(56) of the Companies Act 2013 defines a Memorandum of Association (MOA). It's the basis upon which the business is based. It establishes the company's constitution, powers, and objectives.
Section 2(5) of the Companies Act defines the Articles of Association (AOA). It lays out all of the company's management rules and regulations in detail.
Post approval of the above mentioned documents from the Ministry of Corporate Affairs; PAN, TAN & Certificate of Incorporation will be issued from the concerned department. Now, the company is required to open a current bank account by using these documents.
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A Public Limited Company has limited obligations and can raise fund by selling its shares to the general public.
It must have a minimum of three Directors and seven shareholders.
Yes, a public limited company can be listed on stock exchange.
You need to arrange proper identity and address proof of the directors. You’ll need a valid address proof for the business office and you can use your residential address proof for registration of company
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