Public Limited Company Registration in India

According to the Ministry of Corporate Affairs (MCA), every year numerous companies are registered in accordance with the Companies Act of 2013. According to latest data there are roughly 2.46 million companies registered with 1.51 million active companies, under the Companies Act. If you are going to start growing your business by attracting investments from the public, the registration of a public limited company registration India will give you a well-established legal form of your business providing it with an independent legal entity, continuous life, and limited liability.

The ministry's regulations concerning public company registrations are implemented through the registrar of companies (ROC). Making the entire registration process correctly enables avoiding delays and guarantees compliance with all applicable laws and regulations.

Public limited company formation pertains to setting up a company under the Companies Act of 2013 which allows for the offering of its stock to the general public subject to certain applicable laws and approvals. Upon incorporation, the company acts as a legal entity, inasmuch as owning property, making contracts, obtaining loans, and conducting business is concerned.

A public limited company set up will bestow your business with a separate corporate identity as well as limit shareholder liability to a share amount not yet paid. Registration also opens up the way for a proper management system.

Core Reasons are:

• Capital Raising becomes easy: This allows you to issue shares and raise funds from the public

• You have limited liability, keeping personal assets safe if there's any danger to your business.

• It enhances trust and credibility in the market. It helps you to win big clients or contracts.

• The registration gives members the freedom to trade and transfer shares.

• Public limited company registration also grants your business a separate permanent status in the eyes of the law.

If you have plans to expand the business or get more public investment then you may also compare this structure with a Private Limited Company before going ahead.

Here are just some perks of being a registered public limited company:

Distinct Legal Entity

When you register public limited company, it subsequently becomes a separate entity from all the shareholders and directors. As a result, the company can have its own property, conduct business transactions, and obtain its own name.

Limited Liability

With a limited liability public company, personal assets are shielded from any liabilities incurred by the company, limiting the liability of shareholders.

Perpetual Succession

The company is immortal, no matter how many directors or shareholders join or leave, the firm will carry on operations.

Improved Funding Options

Being registered means that the company will enjoy even better funding opportunities via equity or finance from various instruments.

Company Rapport

With corporate registration, the company can gain confidence among the customers, banks, investors, and the government.

Usually, it is required that certain criteria are met before the public limited company registration online, including:

• 3 directors minimum

• 7 shareholders minimum

• At least one resident director

• Registered office address

• A digital signature certificate (DSC)

• Relationship identification number

• Unique name of the proposed firm

• Lawful business purposes

The incorporation of a public limited company is in the jurisdiction of the Ministry of Corporate Affairs (MCA). The MCA uses the Registrar of Companies (ROC) while all the applications for incorporation are done electronically through the MCA portal with appropriate supporting and mandatory documents. You might also require Public to Private Limited conversion services if there are changes to your business structure in the future.

The typical documents required for public limited company registration include:

• PAN cards of all the proposed directors and shareholders

• Aadhaar card, Passport, Voter ID or Driving license

• Passport-size photographs

• Registered office address proof

• Utility bill of registered office

• Rental agreement or property ownership documents

• No Objection Certificate (NOC) if applicable

• Digital Signature Certificate (DSC)

• Director Identification Number (DIN)

• Memorandum of Association (MoA)

• Articles of Association (AoA)

However, the document required can differ in accordance with the ownership structure of the company and the nationality of the directors proposed.

The procedure for registration of public limited company has to be carried out through the Ministry of Corporate Affairs (MCA). The registration process is a multi-level process and generally involves obtaining the digital signatures for the company, drafting the incorporation documents, filing the forms prescribed for incorporation, and then getting the approval from the Registrar of Companies.

Step 1: Company Name Reservation

The first step in initiating the incorporation process is to choose a name for your company that conforms to the standards set by the Companies Act, 2013.

Step 2: Obtain DSC

The next step is to get the Digital Signature Certificate (DSC) by the proposed directors so that the relevant incorporation documents may be signed electronically.

Step 3: Apply for DIN

In the next step, the proposed directors need to acquire the Director Identification Number (DIN), which will be required for starting the job of director in any Indian company.

Step 4: Prepare Incorporation Documents

The proposed company needs to prepare incorporation documents such as Memorandum of Association (MoA), Articles of Association (AoA), and other relevant documents.

Step 5: File Incorporation Forms

You will have to submit the incorporation application online in the MCA portal with all the documents and declarations.

Step 6: Pay Necessary Fees

In the next step, you make the payments of government fees, stamp duty, and other required fees as per the authorized share capital and incorporation state.

Step 7: Respond to Queries from MCA

If the Registrar has asked anything for clarification or documentation, you will need to provide the information within the specified timeline.

Step 8: Get Certificate of Incorporation

Once all the verification is done, the Registrar will approve the Certificate of Incorporation. Once it is issued post review by the Registrar of Companies, it proves that your business has been set up legally.

One of the most important questions in your mind may be how to register a public limited company in India. The answer to this question is dependent on document accuracy, name approval, MCA processing time and in case any missing information or clarification is asked, that can delay the registration.

The typical timeline for public limited company registration is:

The public limited company registration fees is dependent upon the applicable government charges, authorised capital, professional charges, and other statutory requirements.

Note: In the above table, you can find the cost of the basic services that you have to pay during the course of registration of your public limited company with the help of us. The cost of the government services depends on the state or any other authorizing conditions and these may change from time to time; our consultants will help you during registration. Apart from this, the stamp duties and other fees also vary depending on similar factors as discussed before. For the latest fee structure, please feel free to contact our consultants at companyregister.co.in

Once you register a public limited company, it must continue adhering to the requirements set in the Companies Act of 2013. If filings are late, yearly requirements are not fulfilled, or statutory records are not kept, this may lead to paying extra fees, facing penalties and prosecution, or some other regulatory actions. Long-running violations might complicate the situation for the company and even lead to worse consequences under the legal system.

If everything goes fine, the Registrar of Companies will provide you with the Certificate of Incorporation that will be proof of incorporation. The document will contain the Corporate Identification Number (CIN), the date of incorporation, and the company name. The document is essential for opening bank accounts (current account under the company name), making registrations, and starting business operations.

After getting registered, the public limited company remains legal at all times and there is no need to renew it from time to time. It has perpetual validity. Nevertheless, the requirements set by the Companies Act of 2013 should be met in order for the company to be active. If you decide to alter the form of ownership someday, you might consider changing the business to a Limited Liability Partnership (LLP).

After the public ltd company registration in India process is completed, the company should observe compliance with prescribed requirements, which consist of:

• Filing with the Registrar of Companies in prescribed time frame

• Preparation of annual financial statements

• Filing of Returns

• Tax compliance

• Maintenance of statutory books

• Holding meetings in accordance with the requirements

• Statutory audit

• Filing of declarations in the event of changes in directors, registered office etc.

The specific requirements of compliance depend on the nature of the company's activities and the applicable laws.

Once an incorporation of a public limited company is done, it becomes possible to change certain company-related information whenever needed. Some of the amendments which are quite common include changing the name of the company, registered office, directors, authorized capital, or change in the objects clause. Depending on the amendment required, some cases may require approval from the shareholders, board resolution, and the necessary filings with the Registrar of Companies.

As there is no periodic renewal required in the case of public limited company registration in India, once the company is registered, it is important to ensure that you fulfill the statutory obligations continuously to keep the company in an active position.

Renewal Process

The company does not require renewal upon being incorporated. It requires regular compliance in the form of annual filings with the ROC, income tax returns, and financial statements. It is also important to note that specific registrations obtained for certain business activities may have separate requirements related to renewal.

Renewal Fees

There is no fixed renewal fee for a public company registration because the registration remains valid for the life of the company but there may be professional fees applicable because of annual compliance, event based filings in government portals, amendments, or other penalties that may occur.

In case you decide against proceeding with the business after you have completed the register public limited company, you may apply for the voluntary company strike off or use winding-up provisions under the Companies Act, 2013. However, before the closure occurs, you need to clear your debts, perform pending compliance, and file the required forms to the Registrar of Companies.

The public limited company registration online can be rejected under the following circumstances:

• Incomplete incorporation paperwork and documents;

• False information in the registration forms;

• Discrepancy between the name of the proposed company and the name of the companies registered currently as well as seeing the trademark;

• Absence of the Digital Signature Certificate (DSC) and the Director Identification Number (DIN);

• Invalid proof of the registered office;

• Forms and documents without a signature;

• There was no response from your side to the request from the Registrar of Companies.

We provide support to companies with the registration process in India in such states as Delhi, Maharashtra, Gujarat, Karnataka, Tamil Nadu, Uttar Pradesh, Haryana, Rajasthan, Punjab, Bihar, Jharkhand, Odisha, West Bengal, etc. Our professionals will help you in creating necessary documents and making required MCA filings and obtaining the incorporation in accordance with legal requirements.

Our expertise lies in the provision of registration services to various businesses in the following industries:

• Manufacturer & Producers

• Information technology

• Healthcare

• Infrastructure

• Financial services

• Trading-and-distribution

• E-commerce

• Logistics

• Education

• Professional services

No matter our range of services, we also offer other registrations such as GST registration, import-export code, labour registrations, or Start up India registration depending on your business type.

Companyregister.co.in provides solutions to every step regarding registering the public limited company from document drafting to incorporation approval. Our team members verify all documents, complete charter company forms, fix MCA appointments and answer queries from regulatory bodies in order to minimize the time period.

We keep on helping our clients after incorporation by providing statutory registers, governing law corporation changes and filing an annual report.