What is a Public Limited Company?

Public Limited company is the largest form of business available in India. Public limited company is a large company and is formed in order to raise funding from public through IPO etc. There is no limit on maximum no. of members however, after 500 members, SEBI approval is needed

Who can start a Public Company in India?

This is one of the most common question that is being asked by every person who is willing to start any company in India. Though there is no restriction on anybody to form a company in India, but still there are some Confusion in the minds of entrepreneurs which are as Follows:
1. Students: Students over and above the age of 18 can form any type of company in India.
2. Employees: Employees are generally not allowed by their employers to form a company and be a director. They may hold shares but cannot take position as director. If they wants to open any company, then they need to check their employment agreement and may also seek permission from the respective employer.
3. Person with criminal Background: Though they are not barred to form a company, however, they need to give various declarations to the ROC.

Rietway Consultants Public Limited Company Package

The Services which are included in our package are as Follows:
✅ Digital Signatures of 7 Subscribers
✅ DIN of Directors
✅Filing of Spice form
✅Issue of Incorporation Certificate along with PAN and TAN
✅Memorandum of Association
✅Articles of Association
✅Provisional PF ESI Registration
✅GST Registration
✅MSME Registration

Advantages of Public Company Registration

1. No Minimum Capital Requirement
2. Secure Personal Assets
3. Base to Establish NBFC
4. Base to Finance Business

Documents Required for Public Company Incorporation

1. Pan Card of all Directors and Subscribers
2. Identity Proof i.e. Voter Id Card/ Driving License/ Aadhar Card/ Passport of all Directors and Subscribers
3. Address Proof i.e. Bank Statement, Mobile bill, Telephone bill of all Directors and Subscribers
4. Passport Size Photographs of all Directors and Subscribers
5. Current Electric Bill/ Utility Bill as Registered Office Proof
6. Rent Agreement if Applicable

Public Limited Company Incorporation Procedure

Step -1 Arrange all Required Documents:
The first step is to arrange all the documents and send the same over the email / WhatsApp to us. Once all the Documents are Received, we will Start the Further Process.
Step -2 DSC and Name Availability:
The Next Step is to Start the Further Process of Digital Signature and Checking the Name availability.
Step-3 Preparation of Documents:
The Next Step is Preparation of Documents to be Submitted at Department.
Step-4 Filing of Spice Form:

The Next Step is Submission of Spice 32 Form at Department.

Mandatory Requirements for Public Limited Company Incorporation

Now a days, Incorporation of Public Limited Company is a very easy process by Ministry of Corporate affairs. Various Initiatives of Government Such as Start-up India has also boosted the company registrations all over India. Further, also Public company allows to raise funding from the Angel investors, Venture Capital etc. However, following are the mandatory requirements to form a private limited company.
• Minimum 7 Persons are Required to Form a Public Limited Company
• Whatever is the Capital of the company is to be shown within a Period of 6 Months From the Date of Incorporation and E Form INC-20 A is to be Filed for Commencement of Business.
• Compliances to be Filed on Yearly Basis to avoid Penalties.

Mandatory Compliance after Incorporation of Public Limited Company

1. Board Meetings: Every Public company needs to hold minimum 4 board meeting in one Financial Year as per the Provisions of Companies Act, 2013.
2. Statutory Registers: Every Public company needs to Prepare Various Statutory Registers from time to time as per the Provisions of Companies Act, 2013.
3. ROC Filings: Every Public company Must File Various Roc Compliances on yearly basis as per the Provisions of Companies Act, 2013.

Do’s and Don’ts of Public Limited Company

SR.No A Public Limited Can A Private Limited Cannot
1. Do any type of business except which is specifically restricted by law Cannot accept deposits from general public. Check before accepting anything in a public company
2. Declare and pay dividend (profits) to their owners/shareholders subject to CDT @ 18.5%. Cannot give any loan to its director or his relative. Further company should not be used to divert funds.
3. Accept loan from its directors Cannot issue any unsecured debentures, bonds etc
4. Can issue shares at premium and raise funding at high value. Cannot function beyond what is mentioned in the MOA and AOA of the company

FAQ on Public Limited Company

Q1. What is the difference between a listed company and a public limited company?
The difference between listed company and public company is very simple. A public company when go to public to raise capital, it had to get registered with stock exchange and once it is registered, then it is also known as listed company.

Q2. What is the minimum capital require01ment for Public Limited Company in India?
There is no minimum capital requirement for public limited company incorporation in India. Earlier, it was 5 lakhs, however to provide ease of doing business in India, the requirement of minimum capital for Public company is withdrawn.

Q3. What is the Maximum Number of Shareholders in Public Limited Company?
There is no restriction on maximum number of shareholders in a Public Limited Company.

Q4. Can NRI’s/Foreign register Company in India without actually coming to India?
Yes, as Per Provisions of Companies Act, 2013, It is possible to register company in India without even visiting to India. In this case, all the documents of the NRI or the foreign national is notarized at notary public or at Indian embassy as per the respective requirement.