Register Public Limited Company (Limited)
19,000/- (inclusive of all taxes & fees)
Important Points
- - Public Limited Company in 10 to 15 days.
- - Completely online service - No physical presence required
- - No minimum capital requirement
Public Limited Company
Know What is Public Limited Company? and How it is registered?
What is a Public Limited Company?
A public Limited company is the largest form of business available in India. Public limited company is a large company and is formed in order to raise funding from public through IPO etc. There is no limit on maximum no. of members however, after 500 members, SEBI approval is needed.
How to register Public Limited Company in India?
Public limited company registration require 7 persons to start. No minimum capital requirement is there, one can start with even Rs.5,000. Here are following three important points:
# Prepare DSC and file Name Approval: The first step is to prepare DSC and DIN. This takes sometime one to two days. Thereafter, you need to file for name approval. The first word of the name should be unique and name should end with the words “Limited.”
# File for Incorporation: After taking name approval, the next step is to file for incorporation via spice form INC 32. Further, PAN and TAN are not required to be filed separately and the same is allotted on company formation.
# Take GST Registration: After incorporation, access your business and take necessary registration including GST registration. This is because working without tax license is illegal in India.
Know the basics
Learn the basics about Public Limited Company & its compliance
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Documents required for Public Company Registration
For Directors/Shareholders
- Copy of PAN Card
- Aadhar Card
- Address Proof (Bank Statement, Mobile bill, Telephone bill)
- Authorization Form
For Registered Office
- Ownership Proof (Electricity Bill etc)
- Utility Bill (Gas Bill, Electricity Bill)
- NOC (Download format)
Public Limited Company Registration Process
Public Limited Company registration process is very simple with hubco.in. The whole procedure is completely online and one need not visit our office physically to get the Company registration.
# Step 1 - Arrange all required documents: The first step is to arrange all the documents and send the same over the email to us. We will check it and if everything is fine, you will required to pay 50% advance.
# Step 2 - DSC, DIN and Name Approval: After receiving the required documents and 50% advance, we shall start your work. We will get the DIN, DSC and the name approval.
# Step 3 - File for incorporation: Once your name is approved, you will be required to pay the rest of the amount and then we will be file your companies incorporation. Once approval is granted, the incorporation work stands complete.
Time & Cost for Public Company Registration
The Total Cost Breakup
| Items | Qty | Price |
|---|---|---|
| Digital Signature Certificate (DSC) | 7 | 3,500 |
| Director Identification Number (DIN) | 3 | - |
| Name Approval | 1 | 1,000 |
| MOA, AOA and Incorporation Fee | - | Nil |
| Stamp Duty of the Respective State* | - | 1,500 |
| PAN and Tan Application | - | 200 |
| INC 22 | - | 300 |
| CA Certification | - | 700 |
| Professional Fee (Inclusive of Taxes) | - | 4,068 |
| Goods and Service Tax (GST) | - | 732 |
| Total Public Ltd. Co. Registration Cost in India | 19,000 | |
Note: Stamp duty Extra for States: Punjab, Kerala and Madhya Pradesh.
Time for Public Company Registration
It takes around 7 to 10 days to complete the company registration process subject to MCA approvals.
How to choose Company name for Company Registration?
Company name is the most important part of registration & hence should be selected with utmost care. Here is the name format
ABC (Prefix) + Technologies (Suffix) + Limited (End)
- # ABC - Prefix: The prefix should reflect your brand name and should be unique. I.e. no it should not match with any existing company or trademark. The example of prefix i.e. your first word is TATA, Reliance, Hubco etc.
- # Technologies - Suffix: It is regarded as the second word of your company name. This should reflect your main proposed business. E.g., if you are into technology company, then write technology, for steel business, you can use TATA Steel Ltd.
- # Limited - End: These are the ending words which are mandated by law. Every public company shall end his name with word “Limited”. The word indicate that company is not private and limited means capital is limited.
Further some other conditions of rule 8 of Companies (Incorporation) Rule, 2014 needs to comply with.
Mandatory Requirements for Public Company Registration
Now a days, Public company registration has been eased a lot by the Ministry of Corporate Affairs (MCA), further initiatives like startup India has also boosted the company registrations all over India. Further, Public company even allows you to raise capital through public by initiating a IPO. However, to form a public limited company following are the mandatory requirements:
- Minimum 7 persons are required to start a public limited company in India.
- Whatever is the capital amount of your company, you should invest the same within 2 months of incorporation.
- Public companies are large companies and hence, all the sections will have direct impact on its compliances.
Who can start a Public Company in India?
This is one of the most important question that is asked by every person who is willing to start a company in India.Through there is no restriction on anybody to form a company in India, but still, we would like to discuss some special cases:
- Students: Students over and above the age of 18 can form any type of company in India.
- Employees: Employees are generally not allowed by their employers to form a company and be a director. They may hold shares but cannot take position as director. If you want to open a company, then check your employment agreement and you may also seek permission from the respective employer.
- Person with criminal background: Though they are not barred to form a company, however, they need to give various declarations to the ROC.
How to raise funding in a Public Limited Company?
Finance is a lifeline of any business and in todays world every competition is neck to neck, availability of good finance is needed in order to sustain. You may refer the practical example of Flipkart, Ola etc. Hence, you must follow the following in private company in order to raise funds:
- Build a plan and a working business model: Gone are those days when you can get funding on the basis of an idea.Now, is the time, that you should test your own idea, reach a MVP and then build a strong future plan.
- Reach investors and list on stock exchange: You may reach the private investors or list your shares on stock exchange. However, initiating a IPO is a very complex task.
- Prepare Documents: Once you sign the term sheet, next and final step is to prepare documents like Shareholder agreement etc.
Mandatory Compliances after Public Company Registration
There are many compliances which a company needs to follow, however, we would like to discuss few most important compliances for public limited company in India:
BM
Every public company needs to call minimum 4 board meeting as per the Companies Act, 2013.
Filings
A company needs to file MGT 14 from time to time.Also, needs to prepare some statutory registers.
ANNUAL
This is most important where annual filing needs to be completed within time.
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What all you can do under Public Company Registration?
A Public Company can do:
Do any type of business except which is specifically restricted by law.
Declare and pay dividend (profits) to their owners/shareholders subject to CDT @ 18.5%.
Accept loan from from its directors.
Can issue shares at premium and raise funding at high value even from public.
A Public Company cannot do:
Cannot accept deposits from general public. Check before accepting anything in a public company.
Cannot give any loan to its director or his relative. Further company should not be used to divert funds.
Cannot issue any unsecured debentures, bonds etc.
Cannot function beyond what is mentioned in the MOA and AOA of the company.
Advantages & Disadvantages of Public Company Registration
Advantages of Public Co. Registration
No minimum capital
Secure personal assets
Base to establish NBFC
Best to finance business
Disadvantages of Public Co. Registration
Cannot accept deposits
Strict Compliances
Yearly compliance cost
Bank finance not available before 2 years
FAQs about Public Limited Company
Q. What is the difference between a listed company and a public limited company?
The difference between listed company and public company is very simple. A public company when go to public to raise capital, it had to get registered with stock exchange and once it is registered, then it is also known as listed company.
Q. What do you mean by listed company?
Any company who wants to raise funds through general public, first have to get themselves listed on any recognized stock exchange. Any company which is being recognized or listed on any stock exchange, is known as listed Company. Like Infosys, Tata, ICICI Bank etc.
Q. How can a public company raise funding from general public?
Public limited companies is the only class of company which is allowed to raise funds from the general public. The process of listing a company and raising the funds from public by making offer is known as Initial Public Offer (IPO). IPO is the process through which shares are offered by the companies to raise funds.
Q. How long does it take to register a public limited company in India?
With Hubco.in, it takes around 10 to 15 days to register the Company. Further, in case you need a quick registration, you need to provide us the documents on time or as early as possible.
Q. What are statutory compliances of Public Limited Company?
There are various statutory compliances prescribed for Public Limited Company in India. Here are glimpse of some of the compliances:
- Have to conduct atleast 4 board meeting during the year.
- Have to file AGM every year and do the respective filing like MGT 7, AOC 4 etc.
- Have to go through an yearly mandatory audit to be done by a Practicing Chartered Accountant.
- Need to keep record of register of Members, Minutes book etc.
Q. Can a NRI/Foreign national incorporate a Public limited company? and can he hold directorship under limited company?
Yes, NRI and foreign National can incorporate a public limited company in India without even coming to India. As per the law, all the documents needs to be notarized or apostle from the public notary or Indian embassy of the foreign Country.
Further, NRI and foreign national can also become director in the company.
Q. How to Select Name for Public Limited Company? with examples.
The company name selection should be done on the basis of company name structure. The Company name should start with your brand name e.g Hubco is our brand name (Trademark filed) and hence we have registered Hubco Technologies Private Limited. Likewise, in case of TATA steel limited, TATA is the brand name.
The second part of the Company name denotes its objective. Like in case of TATA Steel Limited, steel denotes its steel business. The last part of the Company name ends up with ‘Limited’. No public company can be registered without having limited word at the end.
The basic structure for your reference is as follows:
| FIRST NAME | OBJECTIVE | LIMITED |
|
This could be anything, like your surname, your brand name, like TATA in case of TATA Steel Limited |
Objective denotes your business activity, like steel in case of TATA Steel Limited. |
A public limited Company always ends with these words and are mandatory by law. |
Important Point: The new company name should not match the existing company or any existing trademark in India.
Q. What are the major advantages (pros/merits) for Public Limited Company?
Public limited companies are the highest considered form of business available in our country. It can do anything that is allowed to do in India. From raising funds from angel investors to having an initial Public Offer (IPO), it can offer many innovative measures to raise funds.
- It can be listed on any stock exchange.
- It is considered for some serious business, helps you to gather resources.
- Considered more trust worthy than any other form of business
Q. What is practical meaning of Public Limited Company? and list some of the examples?
Practically, public limited company is formed only when someone is planning big like setting up manufacturing plant, opening IT infrastructure etc. Generally, people prefer private Limited Company and public limited company is least preferred. However, if you are serious and planning big, the public limited company is chosen.
Some of the example of Public Limited company are Reliance Communications Limited, TATA Steel Limited etc.
Q. What are major steps involved in incorporation of Public Limited Company?
Public limited Company incorporation is done from a totally new procedure, which is done through SPICE e form. The incorporation procedure is as under:
- First we apply for Digital Signatures
- Then we apply for Director Identification Number (DIN)
- Then we apply for Name approval as per your choice
- After that in the end, we apply for incorporation through SPICE e form.
Further, as per amended provisions, PAN and TAN are automatically allotted on company incorporation.
Q. What do you mean by plc Company limited? How company end with word ‘inc’ means?
PLC company limited is the short form of Public Limited Companies. The word ‘INC’ in the end is used by the companies registered in USA, e.g. Animaker Inc. etc.
Q. What are major features/characteristics of the Public Limited Company?
Here are some major features/characteristics of a Public Limited Company:
- It can bring Initial Public offer (IPO) to raise funds and can become the listed company.
- It is the superior form of business and hence compliances and controlling provisions are applicable as per Companies Act, 2013.
- It is not considered a small company and cost of registration and maintenance is high.
Q. What is the difference between Private ltd Company and Public Limited Company?
Private limited company is considered inferior in comparison to Public Limited Company. Public Limited companies are considered to be superior than any other form of business. Here are certain difference between Private Limited Company and Public Limited Company:
| Private Limited Company |
Public Limited Company |
|
It is considered to be the best for startups, however many pvt ltd companies remain non active due to non seriousness. |
It is considered to be the best form of business for large and serious business. |
|
Maximum of 200 shareholders can be added into the company. |
There is no limit on number of shareholders. |
|
Low on the compliances as compared to the Public Limited Company. |
High on the compliances, need expert to manage affairs. |
|
It cannot be listed on any stock exchange. |
It can be listed on stock exchange and can go public to raise funds. |
Q. What are the major disadvantages (cons/demerits) for Public Limited Company?
Like every coin has two sides, Public Limited Company has also certain disadvantages. Here are following disadvantages:
- It incurred high compliance cost.
- More compliances applicable than any other form of business
- Stringent penalties if any non compliance is initiated.
Q. What is the minimum capital requirement for Public Limited Company in India?
There is no minimum capital requirement for public limited company incorporation in India. Earlier, it was 5 lakh, however to provide ease of doing business in India, the requirement of minimum capital for Public company is withdrawn.
Q. Can procedure for public limited company registration be done totally online?
Yes, the company can be incorporated online and you don’t need to be present in person. We take care of all the formalities with ease. Hubco.in is a brand in company registration in India.
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