Public Limited Company Registration Process

You can register a public limited company online through the MCA portal using the SPICe+ form for DSC, DIN, name approval, PAN, and TAN. Registering a Public Limited Company in India requires a minimum of three directors and 7 shareholders. There is no upper limit on the maximum number of shareholders. Submitting a DSC of at least one director is important for authenticating the electronically submitted documents. To comply with the initial financial requirement for registration, the company must have a minimum authorized share capital of Rs. 1 lakh

The estimated fees for registering a public limited company in India are around Rs. 40,000 - Rs. 10,00, including the government fee, stamp duty, professional fees, and DSC/DIN. Additionally, the timeline for registration may vary from 7 to 15 working days.

In this blog, we will walk you through everything you need to know about registering a public limited company in India.

What are the Requirements for Registering a Public Limited Company?

Under the Companies Act, you need to comply with certain rules and regulations when registering a public limited company. Here are the main requirements for establishing a public limited company in India:

• Board of Directors: At least a minimum of three directors is required to form a public limited company. Each director needs to obtain a valid Director Identification Number (DIN). 
• Minimum Shareholders: There must be a minimum of seven shareholders, and there is no limit on the maximum number. 
• Digital Signature Certificate (DSC): The registration process includes submitting the documents electronically. Hence, it is mandatory to submit a DSC of at least one director for authenticating the documents submitted online. 
• Authorised Share Capital: There is no minimum authorised share capital requirement for company registration in India; however, companies can choose an authorised capital amount based on their business needs.
• Company Name: The company's name must adhere to the rules of the Companies Act and must be unique and not already used by anyone. 
• Foundational Documents: Key documents include the MoA and AoA. Also, you need to duly file Form DIR-12 to register the details of the directors. 

What is the Process to Register a Public Limited Company?

Follow the steps below to register a public limited company in India while ensuring adherence:

1. Step: Obtain a Digital Signature Certificate (DSC): It is mandatory to obtain a Digital Signature Certificat (DSC) for all proposed directors and subscribers to the MoA and AoA. A DSC is mandatory for filing the forms online on the Ministry of Corporate Affairs (MCA) portal.
2. Step: Apply for Director Identification Number (DIN): Each proposed director needs to obtain a DIN by applying using the SPICe form. You will be required to provide proof of address and identity for the DIN application. 
3. Step: Availability of Company Name: Use the MCA portal online and check whether your desired company name is available. Ensure that the name is not already in use or violates any existing trademark. This step is important to establish a unique identity for your company. 
4. Step: File SPICe+ Form: After your name is approved, complete the SPICe+ form. This detailed form covers all the legalities of company incorporation. Additionally, you will also have to submit the MoA and AoA, which specify the consultation and rules governing the company's management. 
5. Step: Get Certificate of Incorporation (COI): Once you submit the SPICe+ form and the necessary documents, the Registrar of Companies (ROC) will verify and review the application. After your application is successfully verified, you will be issued a certificate of incorporation. This legal document will mark the birth of your company. It will also include the incorporation date and the company's corporate identification number (CIN). 
6. Step: Apply for PAN and TAN: Once you receive the certificate of incorporation, you will need to apply for the company's PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number). These two documents are important for compliance and to conduct tax-related transactions. 
7. Step: Open a Bank Account: Lastly, you need to open a bank account in the company's name. To set up the bank account, you need to submit the certificate of incorporation, MoA, AoA, PAN, and other required documents. You can use this account to manage all monetary transactions of the company. 

Keep in mind that you may need additional approvals or registrations based on the nature of the business and the specific sector it operates in. It includes GST registration, industry-specific licenses, and an import/export code. 

Documents Required for Public Limited Company Registration

You need to gather and submit the following documents for registering a public limited company in India:

Promoters Documents

• PAN card
• Aadhaar card
• Passport-sized photographs
• Proof of address (utility bill not older than 2 months)

Registered Office Documents

• No objection certificate from the premises owner
• Proof of address ( any utility bill that has the company's name and address, not older than 2 months)

Legal Drafts

• Director's Consent (DIR-2)
• AoA (Articles of Association)
• MoA (Memorandum of Association)

Other Prerequisites

• DIN for all directors
• Digital Signature of authorized director

What is the Process to Register a Public Limited Company for NRIs?

Registering a public limited company in India as an NRI follows a similar process to public companies via the MCA's SPICE+ portal. However, the company must have at least a minimum of 7 shareholders and 3 directors. Also, one director needs to be an Indian resident with more than 182 days of stay in India. Here are the steps to register a public limited company in India for NRIs online:

1. Step: Obtain Digital Signature Certificate (DSC): Acquire a class 3 DSC for every director from eMudhra/CAMS, which may take 1-2 days. 
2. Step: DIN and Name Approval: Complete SPICe+ Part A of the form and get a Director Identification Number (DIN) for up to 3 directors. Reserve a unique name for your company by submitting two names for consideration. 
3. Step: File SPICe+ Part B: Submit the MoA/AoA declaration and PAN/TAN application. Public companies also need the e-MoA/AoA format. Pay the required fees to move further. 
4. Step: Receive Certificate of Incorporation (COI): Obtain a certificate of incorporation using CIN, PAN, and TAN via email. After that, open a bank account for the company. 
5. Step: Post-Incorporation Steps: File INC-20A within 180 days of the incorporation. If you are raising funds later, issue a prospectus. 

The registration process may usually take 10-20 days. However, the timeline may vary depending on the Registrar of Companies (ROC) verification of documents and the availability of the company name.

Documents Required for Public Limited Company Registration for NRIs

Here are the documents you need to submit to register a public limited company as an NRI:

What are the Advantages of Registering a Public Limited Company?

There are several benefits of registering a public limited company, which are as follows:

• Public limited companies can raise funds using a variety of financial options.
• PLCs can raise funds by selling shares to the public, which helps in enhancing capital and funding business expansion.
• The shareholders enjoy limited liability protection. In case of liability, it would be limited only to the company without affecting the shareholders in any way.
• A public company needs at least 7 shareholders, while there is no upper limit on the number of shareholders.
• The public company's shares can be purchased and sold easily on the stock market. It helps attract more investors, and the existing shareholders can easily sell their shares.

Fees and Timeline for a Public Company Registration in India

The fees for registering a public company in India are as follows:

Additionally, the timeline for public company registration may vary from 7 to 15 working days.

The Bottom Line

For businesses looking to expand and raise capital from the public, registering as a public limited company is the smartest move. Although it entails higher regulatory requirements, it's important for businesses seeking substantial capital, greater investor trust, and a public listing. Additionally, with proper guidance from Savetaxs, this process can become smooth and easier.

At Savetaxs, our team of experts can simplify the registration process for you by providing comprehensive guidance throughout. We offer customized guidance as per your specific requirements and business objectives. We can help you file the SPICe+ form accurately, gather the required documents, choose a unique name, and offer consultancy with everything related to public company registration. Contact us today as we are actively working 24/7 across all time zones.