Public Limited Company
A public limited company is incorporated for large scale businesses that require huge capital. Easily register a Public Limited Company in India through Filecrat.
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Public Limited Company Registration
A public limited company can invite the general public to be a shareholder in a company. It may be listed or unlisted. It is registered under the Companies Act, 2013 and has an identity of a separate legal and perpetual entity that has limited liability. It is a voluntary association of members that requires a minimum of 7 members and 3 directors to register itself under Companies Act, 2013 but has not set a maximum limit of shareholders.
- Public ltd companies add “limited” as suffix after their names
- Minimum three directors
- General Public can invest in the company
- Liability of the shareholders is limited to the amount invested by them
- Minimum required paid up capital should be Rs. 5 lakhs or higher amount as prescribed under the Act
- A prospectus of the public company is the mirror of affairs of the company
Advantages & Benefits
- Easy and free transfer of shares by shareholders
- Easy to get financial assistance from banks and other financial institutions
- Registered companies can own a property
- Easy exit policy for the shareholders
- General public can invest money which increase capital and business opportunities
- Separate legal identity: A registered company holds a position of separate legal identity and can sue or be sued on its own name
- Perpetual existence means existence of the company does not depend upon any director, shareholder or any other member
- No maximum limits: A public company holds no maximum limit on the following:
3. Limited liability of its members
- Minimum 3 directors
- One resident director in India
- Minimum 7 shareholders
- A minimum share capital of Rs. 5 lakhs
- A unique name for the company
STEP 1: Apply and obtain DSC (Digital Signature certificate) and DIN (Director Identification Number) of all the directors.
STEP 2: Apply for the approval of the name the company through RUN (reserved unique name) application which will be verified by the Registrar.
STEP 3: Draft the memorandum of association (MoA) and articles of association (AOA)
STEP 4: Apply for the license and incorporation of the company through form SPICe (INC-32) along with the required documents.
STEP 5: Apply for PAN, TAN and Bank Account opening.
Disadvantages of Registration of Public Limited Company
- It has more compliances than a private limited company
- No decision can be made without passing a proper resolution
- A larger number of people means more minds and more conflicts.
- Easy exits of shareholder hit the stability of the company
- Preparation and maintenance of statutory documents is stricter as compared to private limited company.
- It has more regulatory requirements and compliance
- It requires higher levels of transparency
- DSC for 3 directors
- DIN for 3 directors
- Name Approval of the Company
- Drafting the MoA and AoA of the Company
- Registration of PAN and TAN
- Obtaining Certificate of Incorporation
All the Directors should furnish the following:
- Self-attested PAN card
- Self-attested address proof
- Two passport size photographs
- Signed Declarations
In case, a director is a foreign national then his/ her documents are required to be validated accordingly:
- Notarized, in case the person is a resident of a commonwealth company.
- Notarized & Apostilled in case the person is a resident of a country which is signatory to Hague convention, 1960 (Convention Abolishing the Requirement of Legalization for Foreign Public Documents)
- Notarized & consularization in case the person is a resident of a country which is not covered in any of the above-mentioned categories.
For the registered office:
- Rent agreement/ Lease agreement
- NOC from the owner of premises
- Latest utility bills
The basic difference is that for a private limited company minimum limit is of 2 members and maximum is of 50 members while in public limited company, the minimum limit is 7 and no such upper limit prescribed as the maximum number of members. Subsequently, a public limited company can get listed on recognized stock exchange while a private limited company cannot invite public to subscribe for its shares.
One name can be applied through SPICe. However, before filling SPICe, reservation shall be made through RUN and input the SRN of approved RUN into SPICe.
- RUN (For Name Reservation)
- SPICe Form (INC-32)
- E-MoA (INC-33)
- E-AoA (INC-34)
Yes, it is compulsory to sign and attach a physical copy of MoA/ AoA with SPICe forms when a non-individual of non-Indian nature is among the first subscribers or there is an individual foreign subscriber which do not have a valid business visa.
Note: When there is attachment of physical copies of memorandum of association and articles of association, then e-memorandum of association and e-articles of association shall not be attached in such cases.
Yes, Non-Resident Indian or Foreign National can be a shareholder or director in a public limited company in India but they are subjected to qualification criteria and requirements according to the Companies Act, 2013.