What is Public Company Registration?
A public limited company enjoys a better avenue in terms of borrowing of the funds. A public limited company can be either a listed one or an unlisted one. A public company has to follow much more compliances as compared to a Private limited company. It can deal in both secured and unsecured debts. A public limited company allows you to trade in the market and issue shares, debentures and accept deposits. A public limited company registration is always beneficial because a public limited company is preferred to provide big financial loans as compared to LLPs and Firms. Incorporation of Public company under Companies Act 2013 gives the ease of doing business, better transferability, more transparency and more accountability of the company towards shareholder.
Eligibility Criteria for public limited company in India
1. Minimum Shareholders (Members)
- To incorporate a Public company it must have at least 7 members/shareholders. However, there is no upper limit for the maximum number of the shareholder.
- Now the very obvious question that may bog you is who can be the shareholder or member of a public limited company? Well any natural, artificial person, OPC, LLP, or any other registered public company can become a member of the company.
2. Minimum Directors
- Minimum of 3 directors is must for public company registration. Keep in mind that the at least one of the directors must be resident of India. Resident in India means a person who has lived in India for not less than 182 in the previous calendar year.
- The proposed director should have Director Identification Number (DIN) issued by Ministry of Corporate Affairs (MCA).
3. Company Name
- It is mandatory for a Public Limited Company to have suffix “Limited” at the end of the name. Apart from this, the Name must be unique and not identical or similar to the registered trademark. The Activity must signify the business, and yes it must end with limited at the end of the company name. The name of the company shall also signify the main, prerequisite objects.
- Well, the most primitive step for the name names approval at the MCA portal by the Registrar of Companies.
4. Company Objects
- Objects of the company must be clearly defined and it must indicate the correct proposed business activities. Objects act as the directions and guides to the company. Company objects shall be legal. A company can have multifaceted objects.
5. Registered Office Address
- The company has to provide a permanent business address proof and ownership proof at the time of applying of Public company registration application filling.
6. Digital Signature Certificate (DSC)
- DSC is must for the purpose of online filing of the documents with Registrar of Companies. It verifies the authenticity of the document.
7. Professional Certification and signatures
- The forms to be uploaded on MCA portal for Public company registration is mandatorily required to be certified by the professionals such as Chartered Account, Company Secretary, and Cost Accountant along with the declarations for incorporation of a Public Limited Company.
- Our Expert team of professionals comprising of CA/CS/Lawyers at Swarit advisors shall help you Register Public Company at a very reasonable price.
8. Minimum paid up capital
- No minimum paid up capital requirement is there at present however on practical grounds Swarit advisors recommend to have certain sum of money as Paid up capital , lets say Rupess 1,00,000/-.
What are the services Swarit Advisors offers for Public company registration?
Our comprehensive range of end-to-end solutions includes following
- End to end services and guidance on how to start a Public limited company in India.
- DSC and DIN application for Indian and foreign nationals.
- Drafting of various resolutions and documents for Public company registration.
- We take the responsibility for end to end follow up with the concerned department.
- Preparation of AOA and MOA
- We provide regular updates on developments on changes pursuant to the Public company registration and Companies act 2013 updates via your registered mail.
- Free consultation on the Public company registration and related matters.
To avail any of the above-stated services, kindly establish contact by posting a query at our site.
Documents required for Public Company Registration
To incorporate a public company one need to apply at the MCA (Ministry of the corporate affair) Portal along with the requisite documents.
- PAN card of the directors (Copy)
- Photograph of the Directors (passport sized)
- Adhaar card or voter identity card
- Rent agreement copy (In case of the rented property)
- For self-owned property –property pares are to be produced.
- Water bill or Electricity bill.
- NOC (No Objection Certificate) from the owner.
Steps involved in the formation of a Public company
Once you are ready with the documents, you may proceed for Public company registration as defined in below steps:
Step1: Obtain DSC and DIN
Apply for DSC, in order to verify and upload the desired forms to be filled online at the MCA portal. Thereafter one proceeds for DIN application. However in the case of newly proposed directors at the time of application of incorporation of a public company can be, the DIN can be obtained along with the incorporation application itself.
Step2: Name reservation
Apply for name approval in e-Form RUN and check the availability of name. At a time you can propose two names along in order of preference, along with the fees of Rs 1000/- at a time.
Step3: Filling incorporation certificate
Form SPICE 32 is required to fill for the purpose of Public company incorporation along with the documents as stated above.
Step4: PAN and TAN application
Well with new Public company incorporation form SPICE 32, one can apply for PAN and TAN along with the incorporation Form.
What are the Advantages of a Public Limited Company?
1. A public company can issue share to the public.
2. Shares are more reliable.
3. Raise large fund from the public.
4. Shares are listed in Stock exchange and hence gain the trust of investors.
5. The liability of the members and shareholders is limited to their shares.
6. Directors will not be at risk of being seized by banks, creditors, and government.
7. The capital raised from the Initial Public is the capital source, on which no interest or repayable like debt is to pay back.
8. Even the death of the shareholders does not affect the existence of the public company. Enjoys the benefit of perpetual succession.
9. Financial institution even prefers to render financial assistance to the large public limited company.
10. Quick share transfer is facilitated.
11. Borrowing capacity is high.
12. Can sue or be sued in its own name.
13. Foreign Direct Investment is permissible.
Disadvantages of Public Limited Company Registration
1. Overall ownership and control in a centric manner are absent.
2. A lot of statutory regulations are required to be adhered to.
3. Stringent penal consequences in case of non- compliances.
4. Profits are shared among many people.
5. Public disclosure of financial affairs is a must.
Tax Liability for a Public Company
The Taxes are to be paid annually and at the flat rate of 30% on the total income and surcharge of 5% is also applicable if the income exceeds 10 Million plus 3% Education cess & Secondary and Higher Education cess on the total of income tax and surcharge. The Public Limited Company is considered a tax resident hence tax is levied under Income Tax Act, 1961 at flat 30% rate.
Swarit advisors offer all kind of income tax filing services for public limited company and other companies at very reasonable rate along with the yearly subscription facility. The services pertains and includes everything dedicated to accounts, financial statements, preparation and filing of MCA return, income tax return, GST return filling etc.
Compliance checks for the Public limited company
A public company shall strictly adhere to the compliances pursuant to the Companies Act 2013.In the case of listed companies all the compliances pertaining to the SEBI Regulations.
A public company is also obliged to adhere to the compliances of notifications issued as and when applicable and such other regulations pertaining to the FERA, FEMA, SEBI(Listing Obligations and disclosure requirements) Regulations 2015( LODR Regulations).
To know more in detail kindly contact Swarit advisors.
Frequently Asked Questions on Public Limited Company Registration
It takes around 8-10 days to register a Public limited company, excluding the delays on the part of government authorities.
No, you can register it at your residential address too.
Yes, definitely, an NRI can be a director, however, one of the directors on board should be Indian.
Statutory fees are included in our package and we shall send you the detailed invoice about the fees structure.
The validity pertains to life, that is untill the company is wound up and certificate of registration is surrendered.