A Public Limited Company is a separate legal business entity having limited liability. The securities of a Public limited company are traded on a stock exchange. In order to register as a Public Limited Company, the company must have a minimum of 3 Directors and 7 Shareholders. And should also have Rs 5 Lakhs as Paid-up Capital.
Procedure to register a Public Limited Company
Follow the steps to register a Public Limited Company:
- Obtain a DSC of the proposed Directors of the Public Limited Company
Obtain DSC of at least one director to sign the E-forms related to incorporation.
- Once a DSC is received. File Form DIR-3 with the ROC for getting a DIN if the directors does not possess DIN.
For DIN application you will require Identity Proof and Address Proof. Every Director proposed to be appointed in the company should hold a valid DIN.
- Visit MCA website for name reservation/ availability.
Click on RUN (Reserve Unique Name) under MCA Services on the MCA website.
- It will take you to another Portal. Now login using your MCA credentials.
Under entity type select Public Limited Company.
You don’t need to add CIN since it for existing registered companies.
Enter the proposed name make sure it is not similar to the existing name.
- Fill in the required information.
Click on the Auto check.
Further, if the name matches an entry in the database, it will show an error. Once the proposed name is error-free, you need to pay a minimum amount of Rs. 1000 run the similarity test and to reserve the name.
- If the proposed name is approved by the Ministry. You will receive a notification about the same on your registered email address.
Download all the forms of incorporation on MCA Website.
- File Form INC-12 also known as SPICe form.
For application of licence for Public Limited Company.
- File SPICe MOA and SPICe AOA.
Upload these form on MCA Website.
Documents for Incorporation
- PAN number of all the shareholders and directors
- Proof of identity of all shareholders and directors.
- Proof of Address of all directors and shareholders.
- Utility bill of the proposed registered office of the company.
- NOC from the landlord if the office premises are on lease or rent.
- DSC of Directors.
- DIN of all directors.
- Memorandum of Association (MOA).
- Articles of Association (AOA),
Yes, there is no legal hurdle. However employment agreement may have some restriction.
Following are the primary requirements of Public Company:
– The minimum number of shareholders must be 7.
– File accounts within 6 months of the year-end.
– The minimum Paid-up share capital must be Rs. 5 lakhs.
– The minimum number of Directors is 3.
Yes, an NRI or Foreign National can also be a shareholder or director in a Public Limited Company of India. However, for becoming a director, such a person must possess the DIN issued by MCA.