A Public Limited Company registration is most viable for business structure for entrepreneurs who are aiming for large-scale business operations. To register a Public Ltd. Company there must be a minimum of 7 members and there is no maximum limit to the maximum number of members/shareholders for starting a Public Ltd. Company.
A Public Limited Company under the Company Act, 2013 is a company that offers shares to the public at large and has limited liability. The stock of the company can be acquired by anyone, privately through (IPO Initial Public Offering or through trades at the Stock Market. A Public Limited Company is regulated very strictly and is required to publish its true financial health to its shareholders at all times.
The rules and regulations governing a Public Limited Company are stricter in comparison to that of a Private Limited Company. It is a better option to incorporate a Public Ltd. Company as it has benefits of a Private Ltd. Company with features such as easy transferability and ownership of shares.
The Rules and Regulations under the Companies Act, 2013 have to be adhered to in order to form a public limited company. The key requirements are enlisted below –
- Minimum 7 shareholders are required to form a public limited company.
- A minimum of 3 directors are required to form a public limited company and a minimum of the share capital of Rs. 5 Lakhs is required.
- A digital signature certificate (DSC) of one of the directors is needed while submitting self-attested copies of identity and address proof.
- Directors of the proposed company will need a DIN.
- An application comprising the main object clause of the company is to be made. This object clause will define what a company will pursue after its incorporation.
- Submission of the application of ROC (Registrar of Companies) along with the required documents like MOA, AOA, duly signed Form DIR-12, Form INC-7, and Form INC-22 is needed.
- After obtaining approval from ROC, the company should apply for the “certificate of business commencement”.
- Passport-sized photographs of all the Directors.
- Copies of the Identity Documents of all the Directors of all the Directors (Aadhar Card, Voter Card, PAN Card)
- DSC (Digital Signature Certificate) of all the Directors
- DIN (Digital Identification Number) of all the Directors
- If the office is rented property- The rent agreement
- If the office is an owned place- the property ownership documents
- Water bill and electricity bill of the business place
- NOC by Landlord (No objection Certificate) – In case of rented office
- Memorandum of Association (MOA)
- Articles of Association (AOA)