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What is a Public Company? Why is it formed?

A public company is a type of organization where the ownership of the company is distributed among the public shareholders. The system takes place through the free trades and shares of the stock exchange and over-the-counter markets. The shareholders, who are the equity owners of the organization, might be interested in purchasing the stocks of the firm. Due to this phenomenon, these companies are referred to as “public”.

The primary purpose of getting public company registration is to reach a larger amount of capital. Again, expansion of opportunities, fewer risk factors, liquidity of share, shared liability and goodwill are also the reasons behind the formation of a public company.

If you wish to start a business and incorporate your own company. Make public shareholders and launch public issue. Click here and get your public company registered now.

Public Limited Company Registration Guide

Eligibility to register as Public limited company?

At least 3 directors

There must be 3 directors at least to form the company and get it registered.

Minimum 7 shareholders

For public company registration, there must be at least 7 shareholders.

Minimum share capital worth 5 Lacs

The company must have a minimum amount of Rs. 5 lacs as the authorized capital and subscribed share capital.

1 Director must be an Indian

At least one of the directors must have his/ her residential proof as an Indian for the public company registration.

DSC and DIN of the directors

All the directors of the company must have a DIN, and one among them must have the DSC.

Unique Name

As per the Companies Act 2013, the company’s name and trademark should not match with any other company. Include the word ‘limited’ after the company name.

Benefits of Registering a Public Limited Company

Huge Capital
Public companies can raise a large amount of capital. If the strategies are good and convincing, then high capital can be gained. It will help in the acquisition of personal wealth and enhance the growth of the business. Also, the freedom in including an unlimited number of shareholders is another source of achieving increased capital.
Free Transference of Shares
The shares of a public company can be freely transferred. The process doesn’t involve any complication about the consent of the shareholders.
Shareholder’s Limited Liability
The shareholders of a public company are only liable for the shares that they have subscribed to. They are not personally responsible if the company suffers from any debt or loss.
Freedom of Ownership
A public company can sell, buy, and own a property like an individual. Public company registration service provides this freedom of ownership to the public firms.
Perpetual Existence
Any public company will continue its existence even if the shareholders, directors, or officers die or leave.
Getting a Prestigious Profile
A public limited company holds better prestigious status than a private limited company. Traits like higher requirements of capital, legal and organized management and transparency of the system are the reasons behind creating a good impression on the audience.
Expanding Opportunities
Having more potentiality in the capital and increasing activity in the financial field help the public companies to invest in newer projects and products.
Large Capability to Borrow
Public companies have a large borrowing power from banks or other financial institutions. They also have access to many instruments that are not available to other business organizations.

Documents Required For Public Limited Company Registration

Passport Size Photo

Give 2 passport size photos of all the directors.

Identity Proof

All the directors and shareholders must provide a PAN card (for Indians) or Passport (for Foreign Nationals). Also, provide Voter ID/ Driving license/ Passport as an ID-proof.

Address Proof

Provide bank statement/ mobile bill/ telephone bill/ electricity bill.

Company Name

A unique name you wish to start your company with. Give 6 options for fast registration.

Rent Agreement

If Rented Business than Rent Agreement Copy else sale deed of the property

Company's Objective

What service, product or goods company wants to sell or manufacture.

Registered Office Proof

As proof of your registered office, provide any conveyance/lease and deed/ rent agreement with rent receipts. Give a telephone/ electricity/gas bill (not older than 2 months). Submit landlord-issued NOC too.

Board of Company Resolution

Do not forget to submit the Board of Company resolution/ LLP of the authorizing directors.

Procedure for Public Limited Company Registration

Public Company is registered with the registrar of companies. An application form filled and signed by all partners along with the fees has to be submitted on MCA Website.
  • Digital Signature DSC

    Obtaining DSC and DIN

    Want to know how to form a public company? First, you will have to start with getting DSC and DIN by filling forms at the MCA portal.

  • name-application

    Approval of the Company Name

    Apply for the company name approval process. The director of the company having the DSC must sign the form digitally. Then, upload it on the MCA portal.

  • document-preparation

    Document Submission and Incorporation Form Filing

    Provide the Memorandum of Association (MoA) and Articles of Association (AoA) documents. Then, file the SPICe (INC-32) form with the RoC to begin the public company registration process.

  • tm-search-report

    Scrutiny of the Documents

    Once the incorporation forms are filed, an officer of the RoC office will scrutinize it.

  • documents-submission

    Issuance of the Certificate of Incorporation

    After successful scrutiny, the company will be issued with a CIN number and the Certificate of Incorporation.

  • work-completion

    Issue of PAN and TAN of the Company

    The PAN and TAN of the company get issued along with the Certification of Incorporation. Thus, the process for public company registration service is completed. The company now gets incorporated as a public company.

Partnership Firm Registration Service Packages

Public Company - Basic

Public Company Registration Only
  • PAN & TAN Registration
  • DIN - (3 Nos)
  • Class II DSC (7 Nos)
  • MoA, AoA Preparation
  • Stamp Paper Upto Rs.1500/-
  • GST Registration
  • 50 Share Certificates
  • Free CA Consultancy

Comprehensive Plan

Includes All Important Registrations
  • PAN & TAN
  • DIN - (3 Nos)
  • Class II DSC (7 Nos)
  • MoA, AoA Preparation
  • Stamp Paper Upto Rs.1500/-
  • GST Registration
  • Free CA Consultancy
  • MSME Certification (Optional)
  • TM Registration (For Startups, MSME & Individuals)
  • Annual Reports
  • Director Report
  • Board Resolution
  • MCA Returns & Filings
  • ITR Filing 1st Year
  • Udyog Aadhaar

Public Company - Brand Protect

Includes TM Registration
  • PAN & TAN Registration
  • DIN - (3 Nos)
  • Class II DSC (7 Nos)
  • MoA, AoA Preparation
  • Stamp Paper Upto Rs.1500/-
  • GST Registration
  • 50 Share Certificates
  • Free CA Consultancy
  • MSME Registration
  • Trademark Registration

Frequently Asked Questions

Answer: No. The company address doesn’t need to be a commercial one. You can also use a residential address.

Answer: It usually takes 7 working days for the completion of the public company registration process. But, the time of the process may differ depending upon the time of approval of the filed application. If the application gets rejected in the first attempt, then the time for the registration procedure will get extended.

The normal registration route can take up to 30 days but registration through SPICe takes just 7 days.

Answer: Yes. Any foreign resident can become a part of a public limited company in India. You can become a director or shareholder by showing legal documents.

Answer: No. The directors or shareholders do not need to be physically present for the incorporation process of the public company.

Answer: A public limited company can have an unlimited number of shareholders.

Answer: To get the DIN (Director Identification Number) it may take up to 2-3 working days.

Answer: Yes. It is mandatory to provide a NOC from the landlord if you are using the address of a rented or leased place.

Answer: The name of the public company will be valid for 20 days from the date of application.

DIN – Rs.1000 (for 2 Directors)

RUN Form Fees – Rs.1000/-

Article of Association (AoA) –  Rs.1000 (for authorized capital upto 10 lakh)

Memorandum of Association (MoA) – Rs.1000/-

Answer: Yes. As per the Companies Act 2013, to open a public limited company, it is mandatory to have at least 3 directors.

Answer: No. GST and PF will not be automatically applied. After the public company crosses a particular minimum threshold, only then PF and GST will be applicable.

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