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    Public Limited Company

    A Public Limited company is a business entity formed for any lawful purpose under the provisions of the companies Act, 2013 and which is not a private company. Minimum seven persons are required for incorporation of a Public company.

    • Separate legal entity
    • Perpetual succession
    • Limited liability of members
    • Easy transferability of ownership
    • Easy Financial Assistance



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    How it works?


    1.

    Learn about the service and get all-inclusive price

    2.

    Pay and submit documents online

    3.

    Our expert will do the requisite filings and get Certificate

    Overview


    A company incorporated outside India seeking interest to start their operations in India as a start-up structure can incorporate a public limited company with an option to raise capital from public.

    Foreign direct investment in India has mainly two entry routes- Automatic Route and Government Route. Automatic Route is the entry route through which investment by a person resident outside India does not require the prior Reserve Bank approval or Government approval.

    Government Route is the entry route through which investment by a person resident outside India requires prior Government approval. Foreign investment received under this route shall be in accordance with the conditions stipulated by the Government in its approval.

    In a Public Limited Company, minimum of three and maximum of 15 persons can be appointed as Directors. It is the most popular and preferred form of business in India as it combines the features of both company and LLP. In the event of winding up of Public Limited Company, the personal assets of the members shall not be held liable for debts and losses of the company.

    Features


    • Separate Legal Entity

      As a juristic legal person, both the company and its members have separate legal identity that is distinct from each other.

    • Perpetual succession

      A company’s existence is uninterrupted, even the death or insolvency of its shareholder(s)/directors does not affect the continuity of business of the company.

    • Limited liability of members

      The liability of members of a public limited company is limited to the amount of share capital remaining unpaid on the shares held by them.

    • Easy transferability of ownership

      The ownership in a public limited company is easily transferable by way of transfer of shares from one member to another.

    • Easy financial assistance

      Public Limited Company can raise capital from public along with the other modes of raising finance.

    Things to Know


    Unique Name

    The proposed name selected by you should be unique and should not resemble to the name of an existing company or Limited Liability Partnership.  

    Share Capital Share capital of a company is divided into four parts:

    1. Authorized Share Capital: It means such capital as is authorized by the Memorandum of a company to be the maximum amount of share capital that can be raised by a company.
    2. Issued Share Capital: It means such capital as the company issues from time to time for subscription
    3. Subscribed Share Capital: It means such part of the capital which is for the time being subscribed by the members of a company
    4. Paid-up Share Capital: It means such aggregate amount of money credited as paid-up as is equivalent to the amount received as paid-up in respect of shares issued and also includes any amount credited as paid-up in respect of shares of the company, but does not include any other amount received in respect of such shares, by whatever name called. There is no minimum paid-up share capital prescribed for a public limited company. However, it is suggestible that the subscribers to the memorandum of association shall bring in some capital for carrying on the business operations of the company. 
    Directors   Director is a person appointed to the Board of a company. Board of Directors of a company are entitled to exercise all such powers and to do all such acts and things as the company is authorized to exercise and do except those which are specifically required to be exercised by a company in general meeting. The Board of Directors of a public limited company shall comprise of minimum three directors out of which at least one must be resident in India.    
     
    Subscriber  
    Subscriber means a person who has agreed to subscribe to the share capital of the company and on its registration, whose name is entered as a member in the Register of Members. Minimum seven subscribers are required to incorporate a public limited company. Subscribers of a company can be resident in or outside India. There is no restriction on a subscriber (being an individual) of a public limited company to be a director of the same company or vice versa.  
     
    Registered Office   
    It is mandatory for every company to have a registered office capable of receiving and acknowledging all communications and notices as may be addressed to it. Registered office of the company must be situated in India.

    Process and Timelines


    Step 1.

    1-2 Days

    Obtaining requisite Documents and information

    Step 2.

    1-2 Days

    Obtaining DSC

    Step 3.

    1-2 Days

    Filing of Requisite forms with ROC

    Step 4.

    2-3 Days

    Certificate of Incorporation

    Document Required


      From Directors

    • Copy of PAN (in case of resident)
    • Copy of Passport (in case of non-resident)
    • Copy of proof of identity(Voters ID/ Driving License/ Passport);
    • Copy of residential proof (Bank Statement/Telephone Bill/ Mobile Bill/Gas Bill not older than two months);
    • Consent to act as directors*
    • Disclosure of interest in other entities*

      From Company

    • Copy of Sale deed/ Property Deed (in case of owned property) or Lease Deed (in case of rented premises)
    • Copy of Telephone or Mobile/Electricity or Gas Bill of registered office (Any one, not older than 2 months)
    • No-objection Certificate from the owner from the owner of the premises for its use as registered office*
    • Memorandum and Articles of Association*

      From Subscribers

    • Copy of PAN (in case of resident);
    • Copy of Passport (in case of non-resident);
    • Copy of proof of identity(Voters ID/Driving License/Passport);
    • Copy of residential proof (Bank Statement/ Telephone Bill/ Mobile Bill/ Gas Bill not older than two months);

    Note: *Draft will be provided by our team

    Note: Following additional documents will be required in case the company to be incorporated is a subsidiary of another company: • Copy of resolution passed by the Parent company for incorporation of subsidiary company; • No-objection certificate from the parent company for using its name by the subsidiary company; • Certificate of Incorporation of the Parent company

    Why Companies Next


    At Companies Next, we have a dedicated team of professionals for providing quality services with accuracy and within given timelines. We provide a complete transparent and online platform for registration of your public limited company.   Our subsidiary public company registration include:

    • DSC of Subscribers and Directors
    • 3 DIN
    • Company Registration fees and stamp duty
    • Certificate of Incorporation
    • Company’s PAN and TAN
    • Company's EPFO and ESIC Registration
    • Professional Tax Registration (Maharashtra)
    • Opening of Bank Account 
    • Drafting of Memorandum and Articles of Association
    • Drafting of requisite declaration(s), consent letters, etc.


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    FAQ's


    The minor shall not be appointed as director of the company. He needs to be over 18 years of age and must be a natural person. Foreign nationals are also eligible to be a director in an Indian Public Limited Company provided that at least one of the director shall be resident of India.

    No, you are not required to be present at our office or appear at any office for the incorporation of a Public Limited Company. All the documents can be scanned and sent through email and the original hard copy can be couriered to our office.

    Once a Company is incorporated, it will be active and in-existence until you liquidate it either by striking-off or winding up.

    DIN is a unique identification number assigned to all existing and proposed Directors of a Company. Before a person gets appointed as a Director, he must obtain a valid DIN. DIN never expires and a person can possess only one DIN.

    There are two types of Public Limited Company- unlisted and listed. Unlisted public company does not have its shares listed on a Stock Exchange and only shares of listed companies are traded on a Stock Exchange.

    But if you want to register yourself as Listed Public Limited Company, huge compliance and more documentation is involved and it will delay the incorporation process. You can register as unlisted Public Company and then can get yourself listed with the stock exchange.

    For setting up a public limited company, minimum of 3 shareholders are required. However, there is no limit on maximum number of shareholders.

    In addition, minimum of 3 and maximum of 15 directors can be appointed by any public limited company. There is no restriction on a Member of a Public Limited Company to be a Director of the same company or vice versa.

     

    To incorporate a Company quickly, make sure the proposed name of the Limited Company is very unique. Names that are similar to an existing company / limited liability partnership / trademark can be rejected and additional time will be required for resubmission of names.

    A Digital Signature Certificate (DSC) establishes the identity of the signee electronically while filing documents. The Ministry of Corporate Affairs (MCA) mandates that e-form(s) submitted on MCA portal are digitally signed using DSC.

    A Public Limited Company must hold a minimum of four Board Meetings every year in such a manner that not more than 120 days shall intervene between two consecutive meetings. In addition to the Board Meetings, an Annual General Meeting must be conducted at least once every year.

    Further, every Director of the Company holding a valid DIN as on 31st March of a financial year shall submit Form DIR-3 KYC with the Registrar of Companies. The above compliances are in addition to filing of Form AOC-4 and MGT-7 with the Registrar of Companies.

    Yes, NRIs / Foreign Nationals / Foreign Companies can hold shares of a Public Limited Company subject to Foreign Direct Investment (FDI) Guidelines.

    Yes, a shareholder of the company can be a natural person or a body corporate.

    Yes, a salaried person can become a director in Public Limited Company. There are no legal bondages in this but you may have to go through with your employment agreement if it contains any restrictions in doing so.

    Investment by person resident outside India is prohibited in certain sectors namely:

    1. Lottery business including Government/ private lottery, online lotteries;
    2. Gambling and betting including casinos;
    3. Chit funds (except for investment made by NRIs and OCIs on a non- repatriation basis);
    4. Nidhi company;
    5. Trading in Transferable Development Rights (TDRs);
    6. Real Estate Business or Construction of Farm Houses;
    7. Manufacturing of cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes. The prohibition is on manufacturing of the products mentioned and foreign investment in other activities relating to these products including wholesale cash and carry, retail trading etc. will be governed by the sectoral restrictions laid down in Regulation 16 of FEMA 20(R);
    8. Activities/ sectors not open to private investment viz. atomic energy and railway operations;
    9. Foreign technology collaboration in any form including licensing for franchise, trademark, brand name, management contract is also prohibited for Lottery business and Gambling and betting activities

    Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued by Income Tax Department of India as a proof of identification for tax purposes. It is mandatory for obtaining Digital Signature Certificate, opening bank account, various statutory registrations, to pay taxes and filing tax returns and many other transactions as prescribed by government time to time.

    Yes, Profits earned by the public limited company are freely repatriable from India for Non Residents, subject to payment of applicable taxes to the Government.

    Yes. It is mandatory for all the new companies incorporated w.e.f 23rd February, 2020 to obtain EPFO and ESIC registration.
     
    Yes. All the new companies are required to apply for opening the company’s bank account through the Form AGILE PRO.
     
    No. Registration for Professional Tax  is mandatory only in respect of new companies incorporated in the State of Maharashtra w.e.f 23rd February 2020.
     
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