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Public Limited Company
Public Company Registration

Public Company Registration

Public Company Registration


Public company is an organization whose ownership is divided amongst general public shareholders through publicly traded stock shares on a stock exchange.
A company is considered public when the company’s securities trade on public markets, and when the company discloses certain business and financial information regularly to the public.
A public company can be listed on a stock exchange (listed company), which allow to trade its shares. When public companies cross over a certain size it must list itself on a stock exchange.

Such companies are subject to public reporting obligations if they:
• Sell their securities in a public offering such as an IPO (initial public offering),
• Allow their investor limit reach to a certain size, which make it mandatory to public reporting obligations.

REQUIREMENTS FOR REGISTRATION OF PUBLIC COMPANY


To incorporate a public company one should meet the following requirements prescribed under the companies act, 2013:

  • Minimum 7 shareholders are required to incorporate the public company.

  • Minimum of 3 directors is required to form a public company.

  • Minimum of Rs. 5 lakhs share capital is required.

  • Digital Signature Certificate (DSC) of directors

  • Directors Identification Number (DIN) of directors

  • Mandatory to suffix the word “Limited” in the company’s name.

  • Issuance of prospects containing the comprehensive statement of the affairs of the company to the general public.

PROCEDURE TO REGISTER A PUBLIC COMPANY

  1. Apply for the Digital Signature Certificate (DSC)

  2. Apply for Directors Identification Number (DIN)

  3. Apply for Name Availability/ Approval

  4. Filing Form on MCA

  5. Obtaining Certificate of Incorporation

  6. Availing the PAN TAN of the Company

  7. Open a Bank Account

  • STEP 1: Apply for the Digital Signature Certificate (DSC)

    First you have to apply for the Digital Signature Certificate for all the proposed directors in the company. DSC is used to sign the e-forms and is an authentic and safe method to file all the documents on an electronic platform. It is a mandatory document.
    Directors can obtain DSC from the nearest Certifying Authorities or CAs with self-attested copy of their identity proof. It takes around 1 -3 working days to obtain a DSC.

  • STEP 2: Apply for Directors Identification Number (DIN)

    Ministry of Corporate Affairs has simplified the DIN procedure, as an applicant can apply for it through the SPICe+ form and do not require filing any other form. It is necessary for all the directors of the company to apply for Director’s Identification Number.

  • STEP 3: Apply for Name Availability/ Approval

    Next, the directors have to make an application to ministry of corporate affair for name approval. The names applied should be unique and does not go against any provisions relating to intellectual property rights and should suffix the word “Limited” in its name.

  • STEP 4: Filing Form on MCA

    Once the company’s name has been approved you can now file the SPICe+ form to get the company incorporation certificate. Along with it, you have to submit the required documents such as MOA (Memorandum of Association) and AOA (Article of Association). The Memorandum of Association contains the objectives that are to be followed by the Company. The MOA states the object of the business for which the company is being incorporated.
    The Articles of Association states the laws on which the company will operate. All the documents and application are further verified by the registrar authorities and it will take around 7 to 9 working days.

  • STEP 5: Obtaining Certificate of Incorporation

    Once the Registrar of Companies will verify the application and documents it will issue the Incorporation Certificate to the company if no objection was raised and the business can be commenced.

  • STEP 6: Obtaining the PAN and TAN of the Company

    After getting the Certificate of Incorporation, you can apply for the PAN and TAN application by the MCA. This process would take around 1 to 3 working days.

  • STEP 7: Open a Bank Account

    Once the incorporation process is done one can open a Bank account on behalf of the business for any transaction.

BENEFITS OF PUBLIC COMPANY

  • Limited Liabilities for the Shareholders of the Company

  • Perpetual Succession

  • A public company have the benefit of unlimited sources for borrowing funds

  • Public company offered its shares to general public at large level which result in Improved Capital of the Company.

  • Better Opportunities for Growth and Expansion of the Company.

  • The shares are sold to the general public at large level it helps to divide the risk of the market.