A public limited company is incorporated under Companies Act, 2013. Companies registered as public limited company automatically gets a brand value.
As per definition of public company given under 2(71) of Companies Act, 2013,
"Public company" means a company which is not a private company
Thus by definition it is clear that the prime restrictions which are imposed on a private limited company are not applicable in case of public limited company.
We can summarise that public company can:
1. freely transfer its shares;
2. have members without any maximum limit;
3. offer public to subscribe its shares;
It has always been easier for a public limited company to raise fund or to meet their capital requirements.
Public companies are considered more in value as compared to private company due to its larger number of shareholders.
Minimum Incorporation Requirement
A Public limited company can be set up with:
1. 3 Directors
2. 7 Shareholders
3. 1 Registered Office
4. 0 minimum requirement of capital
1. Digital Signatures
2. PAN/Aadhar of directors & subscribers
3. Passport (For foreign Nationals)
4. Residential Proof of directors & subscribers
5. Registered office proof
6. Memorandum of Association (MOA)
7. Article of Association (AOA)
8. Consent and other documents
Process to be followed
1. Apply for Digital Signature of proposed members and directors of the Company
2. Ascertain name of the Company and check the availability of the same in accordance with section 4 of the Act and Rule 8 of the Companies (Incorporation) Rules 2014.
3. File name application in PART A of web based form SPICE+, applicant can file two proposed name in this web based form, after approval of name, file incorporation documents again in PART B of web based form SPICE+
4. Alternatively applicant can directly file name and incorporation application together in SPICE plus, by filing PART A and PART B simultaneously but it may be noted that through Spice Plus only one name can be applied and all documents of the Company to be filed in such proposed name.
5. Proposed directors of the Company can also apply for DIN in same form is they are not holding DIN prior to application. Maximum three directors can apply for DIN allotment at the time of application.
6. Applicants needs to submit below given documents with Spice plus
· E- Memorandum of Association in form INC 33
· E-Articles of Association in form INC-34
· Proof for Registered Office
· Declarations in prescribed format
· Id and Address proof for subscribers and directors etc.
7. Spice plus will be submitted along with AGILE-PRO for application of GSTIN, EPFO,ESIC, Profession Tax, opening bank account.
8. After scrutiny by the Registrar at Central Registration Centre, in case of any deficiency the Registrar may call for additional documents or clarification after providing a chance to resubmit form in 15 days, however if all the documents and details are appropriate than Registrar will issue Certificate of incorporation in form INC-11.
What is included in this
1. 3 Digital Signature Certificate (DSC)
2. 3 DIN;
7. Assistance in opening of Bank Account;
8. Certificate of Incorporation;
9. 24/7 assistance;
10. Time to time legal updates;
11. Follow-up with the MCA;
Can I Incorporate a Public Company with 2 Directors?
No, minimum requirement is 3, a public company can have minimum 3 Directors.
Do all public company needs to get their shares listed on stock exchange?
No, it is the decision of the Company whether to get their shares listed or not.
How much time it will take to register a public limited company?
Firstly, application for name reservation i.e. RUN needs to be submitted thereafter application for company incorporation will get filed , the whole process may take 10-15 days or more depending upon the availability of documents and pendency with Central Registration Centre.
What is MOA?
MOA is Memorandum of Association, which is principle document of any Company, it contains, the NAME, PLACE, OBJECTS, CAPITAL AND LIABILITY clause which defines business of any Company.
What is AOA?
AOA is Article of Association, which lays down the rules and regulations beyond which Company cannot operate.
What is DIN and DSC?
DIN is Director Identification Number, which a 6 digit number allotted by Ministry of Corporate Affairs to given unique Identity to each director DSC is Digital Signature which comes in a pen drive like token and it is equivalent to a physical signature.