Public Limited Company Registration in India - Online Process, fees (2020)| Onfiling
For Indians

Public Limited Company

Overview

What is a Public Limited Company?

As per the Company Act, the company which is not a private company is known as a public company. A private company, subsidiary of a public company shall be deemed to be a Public Company. 

What is the Minimum requirement of shareholders in a Public Limited company?

The minimum requirement for a Public Company is seven shareholders and three directors and no restriction on the maximum shareholder. 

Through an initial public offering (IPO), public companies can issue securities to the general public and a public company can only be listed on stock exchanges. These companies are subject to higher levels of reporting, regulations, and public scrutiny. A listed public company must meet stringent reporting requirements framed by the Securities and Exchange Board of India (SEBI). 

Is the Public Limited Company is the same as a Private Limited Company?

A Public Ltd. company has all the characteristics of Private Ltd. Co. and the ability to possess any number of members, ease in transfer of shareholding, and more transparency. Identifying marks of Public Ltd. Co. is through name, shares, formation, a number of members management, directors and meetings, etc.
 

What are the features of a Public Limited Company?

Minimum shareholders

The number of minimum shareholders is 7.

Minimum Directors

The minimum number of directors is 3. Also, Directors and shareholders can be the same person.

Director

At least one Director who shall be resident in India

Minimum Capital

No Minimum capital required.

 

What are the advantages of a Public Limited Company?

More Capital

When you are selling shares to the public it means that anyone can invest in your company, so its greater source for value of funds.

Goodwill

As more attention is given to the public limited company as it is listed on an exchange which ensures mutual funds and other traders take note of your business. So it’s a great way to make your business a prominent name.

Growth and expansion opportunities

There is a perfect opportunity for the growth and expansion of the business.

What are the disadvantages of a Public Limited Company?

More Regulations

For a public limited company regulations are more stringent. Your company must have all the professionals.

Transparency

Public limited company is held accountable and more thoroughly scrutinized by auditors.

Control over shareholder

It’s much harder to control who is a shareholder of your company, so there’s a possibility of losing control of the direction of your business.

 

What is the registration process of a Public Limited Company?

Digital Signature Certificate (DSC) & DIN

For all the proposed Directors of the Company DSC and Director Identification Number (DIN) must be obtained.

Name Approval

Name approval has to be obtained from the Registrar of Companies [“RoC”] through submission of an application in Form No. – INC 1 and the applicant can give maximum six names in order of preference. The approved name by the authority is valid for sixty days. The Promoter /Subscriber to the MOA and AOA shall be the applicant for the availability of name application. The approved name by the authority is valid for 3 months. Name approval generally takes 1-2 business days.

Memorandum and Articles of Association

After having name approval, the draft Constitutional Documents of proposed Company i.e. Memorandum of Association and Articles of Association of the company is to be drafted and then it is filed with the Registrar of Company along with the forms and other necessary documents stated below.

Subscription Pages of MOA & AOA

MOA & AOA shall be signed by each subscriber to the memorandum of the company who shall provide details of his name, address, description and occupation, if any, in the presence of at least one witness who shall attest the signature and shall likewise sign and add his name, address, details of occupation etc. The witness shall be a practicing professional i.e. practicing CS, Practicing Cost & Management Accountant, or practicing CA. MOA & AOA shall be signed by each subscriber to the memorandum of the company who shall provide details of his name, address, description and occupation, if any, in the presence of at least one witness who shall attest the signature and shall likewise sign and add his name, address, details of occupation etc. The witness shall be a practicing professional i.e. practicing CS, Practicing Cost & Management Accountant, or practicing CA.

Filing on MCA Portal

Next step is to file forms available on the MCA Portal with the Registrar of Companies.

Certificate of Incorporation

After all the clarifications, the Registrar of Companies will issue a certificate of Incorporation with the unique Company identification Number.

To open Bank Account

After incorporation, a bank account in the name of incorporated company shall be opened and the subscribers of Memorandum and AOA of company shall deposit subscription money in that bank account.

   

What is the common registration process of a Public Limited Company?

Shops & Establishment Registration

Every shop and the commercial establishment are required to obtain establishment registration with the Labour Department within 30 days of starting their business. It is mandatory for all states in India.

Trade License

No one should be adversely affected by health hazard and nuisance by the improper carrying of trade a License is necessary from the municipality within 30 days of starting the business.

Professional Tax Registration

Specific legislation have been passed by majority state governments to impose a tax on profession, employment of calling of any nature, however, and the fees for it is Rs. 2500 per annum.

Goods and Services Tax (GST)

GST Registration is mandatory for each business engaged in providing services or supply of products, where the turnover exceeds Rs. 20 Lac or does even one transaction in an interstate trade.

Food License / FSSAI Registration

During a business of producing, trading, storing or dealing in any manner of food items, then the state level FSSAI registration or Central License is mandatory based on the turnover.

Drug License

This location-based Drug License is granted by the State Government based on fulfilling certain norms and criteria. No entity can start or continue sale/trade of medicine without drug license.

Private Security Agency License

Private Security Agency may be a lucrative business with immense potential; however, it can be started or continued only after obtaining a license from the competent authority as designated by the state government.

Import Export Code (IEC)

IEC is a ten-digit pan based registration with the DGFT. IEC is a mandatory prerequisite to start a business of Import or Export in India. Only one IEC code can be issued against a pan.

FAQS

Yes, only one person is required to start a Proprietorship.
As this company deals with public money, it has to make rather heavy compliances strictly, which are bulkier than those performed by a private limited company. Apart from the regular compliances related with income tax, there are many periodic and annual compliances to be made by a public limited company with ROC/MCA, SEBI, RBI, etc.
• Minimum shareholders - 7 • Minimum Directors - 3 (Directors and shareholders can be same person) • At least one Director who shall be resident in India • Minimum paid up capital worth INR 5 lakh
Yes an NRI or Foreign national can also be a shareholder or director in public limited company of India.

List of Documents

  • Registered Office address proof (rent agreement)
  • Identity Proof (Voter ID/Aadhar Card/Driving License/Passport)
  • Passport in case of foreign nationals
  • Income-tax PAN of Indian nationals
  • Residence Proof (Electricity Bill/Telephone Bill/Mobile Bill/Bank Statement)

Pricing Plan

BASIC ₹29000
One Time

  • DSC for 2 Promoter/ Directors
  • DIN for 2 Promoter/Directors
  • Name approval of the company
  • MOA & AOA for the Company
  • Certificate of Incorporation (COI)
  • PAN & TAN Number for the Company
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Get Plan

SILVER ₹14750
Quarterly

  • INCLUSIVE OF BASIC PACKAGE
  • Financial Statement & Board Resolution Preparation
  • Annual & Director's Reports
  • Bank A/C Opening & Dedicated Compliance Manager Support
  • MCA Annual & Income Tax Return Filing
  • GST, MSME Registration & Filing of INC-20A
  • Accounting Software and Eway bill Software
  • 12 GST Return Filing (GSTR-3B or GSTR-1) & TDS Returns
Get Plan

GOLD ₹19750
Quarterly

  • INCLUSIVE OF SILVER PACKAGE
  • Book Keeping & Accounting upto 800 entries
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  • -
  • -
  • -
  • -
  • -
Get Plan

PLATINUM ₹27500
Quarterly

  • INCLUSIVE OF GOLD PACKAGE
  • Book Keeping & Accounting upto 2000 entries
  • Payroll outsourcing upto 50 employees
  • -
  • -
  • -
  • -
  • -
Get Plan

Disclaimer : 1) In case of Rs.10 lakh authorised capital, stamp duty of Rs.5120 (on actuals) will be chargeable extra for the state of Gujarat. Rs.5510 will be the additional stamp duty charges for state of Rajasthan. 2) In case of incorporation in Madhya Pradesh, an additional stamp duty of Rs.7550 will be applicable. In case of incorporation in Punjab, an additional stamp duty of Rs.15025 will be applicable. In case of Kerala, an additional stamp duty of Rs.3025 will be applicable. 3) Package 4 is applicable upto 2000 entries 4) Statutory Auditor fee is payable on actual directly to the Independent Auditor appointed by the Board of Directors. Onfiling will only be responsible for accounting, preparation of financial statements and filing of returns on behalf of the Company.

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