Public Limited Company Registration in India

A Public Limited Company (PLC) is a company whose shares are offered to the general public and can be listed on a stock exchange. It is distinct from a private limited company in terms of ownership, capital raising, and regulatory compliance

Key Features

1. Limited Liability: Shareholders’ liability is limited to their shareholding.
2. Minimum Members: At least 7 members are required to form a public company.
3. Minimum Directors: At least 3 directors are required.
4. Share Capital Requirement: Minimum ₹5 lakh for incorporation (can vary for certain sectors).
5. Share Transferability: Shares can be freely transferred.
6. Regulation: Governed by Companies Act, 2013 and SEBI regulations (if listed).
7. Raising Capital: Can raise funds from the public through Initial Public Offerings (IPO).

Advantages

• Ability to raise capital from public investors.
• Limited liability protects shareholders’ personal assets.
• Easier to attract talented professionals and investors.
• Enhanced credibility and public image.

Disadvantages

• High compliance and disclosure requirements.
• Must hold regular board and shareholder meetings.
• Public scrutiny and reporting obligations.
• More costly to incorporate and maintain than a private company.

Steps to Register a Public Limited Company

1. Obtain Digital Signature Certificate (DSC)
   • All proposed directors must obtain DSC for signing electronic documents.
2. Apply for Director Identification Number (DIN)
   • Required for all directors of the company.
3. Name Approval (RUN)
   • Apply to Ministry of Corporate Affairs (MCA) through the Reserve Unique Name (RUN) service.
   • Ensure the name is unique and not similar to existing companies or trademarks.
4. Drafting and Filing Documents

   Prepare the following incorporation documents:

   • Memorandum of Association (MOA): Defines objectives of the company.
   • Articles of Association (AOA): Governs internal management rules.
   • Form INC-7: Application for incorporation.
   • Form INC-22: Registered office address declaration.
   • Consent of directors (Form DIR-2).
5. Filing with MCA
   • Submit the incorporation forms online through the MCA portal .
   • Attach required documents: ID & address proof of directors, NOC from owner of premises, etc.
6. Payment of Fees
   • Pay the prescribed incorporation fees based on authorized capital.

7.Certificate of Incorporation

• Once approved, MCA issues Certificate of Incorporation.
• This confirms the legal existence of the company.

Post-Incorporation Compliance:

1. PAN & TAN: Apply for PAN and TAN for tax purposes.
2. Bank Account: Open company bank account.
3. Statutory Registers: Maintain registers of members, directors, charges, etc.
4. Annual Compliance: File Annual Return (Form MGT-7) and Financial Statements (Form AOC-4).
5. Board & General Meetings: Conduct as per Companies Act provisions.

Documents Required:

• Identity proof of directors (Aadhaar, Passport, Voter ID)
• Address proof of directors (Passport, Utility Bills, Driving License)
• Proof of registered office (rent agreement + NOC or ownership proof)
• Declaration by directors and subscribers

Key Points to Remember:

• Minimum 7 members and 3 directors required.
• Capital must be at least ₹5 lakh.
• Can invite public investment through IPO.
• Subject to higher compliance compared to private limited companies.