Information

Public Limited Company allows selling shares to public at large. Public limited company registration is governed by the Companies Act, 2013 and the Companies (Incorporation) Rules, 2014. To register a Public Limited Company, a minimum of seven shareholders and three Directors are required. A natural person can be both a Director and shareholder, while a corporate legal entity can only be a shareholder. Further, foreign nationals, foreign corporate entities or NRIs are allowed to be Directors and / or Shareholders of a Company with Foreign Direct Investment.

Features of Public Limited Company :-

  1. Separate Legal Entity.
  2. It can be formed with minimum three Director & Seven members (No maximum limit).
  3. Limited Liability for Members.
  4. Shares are freely transferable.

Documents / Information :-

  1. Minimum 3 Directors and 7 Subscribers
  2. Documents / Information of Directors and Subscribers
    • DSC
    • PAN (Self Attested Copy)
    • AADHAAR (Self Attested Copy)
    • Email ID
    • Phone No
    • Qualification
    • Occupation
    • Residential Status
    • Nationality
    • Place of Birth
    • Contribution
    • Interest in other entity if any
  3. Documents / Information of Company
    • 6 Proposed Names(Maximum)
    • Registered Address
    • Capital Structure
    • Main Object
    • Proof of Registered Office
      • Utility Bill
      • If Owned - No-Objection Certificate from the Landlord
      • If Rented - Rental Agreement Copy between the Company and the Landlord

Process :-

  1. DSC
  2. DIN
  3. Document/ Information collection
  4. Name application
  5. Preparation of MOA And AOA
  6. Submission of Incorporation & other Forms
  7. Certificate of Incorporation
  8. PAN & TAN Allotment

FAQ :-

Why Public Limited over Private Limited Company?

Public Limited Company gives advantage of raising large amount of capital from public. It can also easily raise loans from Banks and other Financial Institutions. It can issue debentures: secured as well as unsecured. Shares are freely transferable. Shares can also be listed on Stock Exchanges.

How long is the Incorporation of a Company valid for?

A company enjoys perpetual succession. Once incorporated, it will continue to exist until dissolved. It may be dissolved voluntarily or by law.

Can a Foreign National or an NRI be a Director in a Public Limited Company?

Yes, a Foreign National or an NRI can be a Director of a Public Limited Company in India after obtaining Director Identification Number. However, at least one Director on the Board of Directors must be a Resident Indian.

Can a Foreign National or an NRI hold shares of a Public Limited Company?

Yes, a Foreign National or an NRI or a Foreign Company can hold shares of a Public Limited Company subject to Foreign Direct Investment (FDI) Guidelines.

What are the other registration requirements of a Public Limited Company in India?
  • Register under Shops and Establishment Act
  • Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
  • Register for Professional tax
  • Register with Employees' Provident Fund Organization
  • Register with ESIC (medical insurance)
  • Filing for Government Approval before RBI/FIPB for Foreigners and NRI's
What if number of members fall below 7 after incorporation?

Members severally liable for debts where business is cariied on with fewer than 7 members for more than 6 Months if they are cognizant with this fact.

Information

Public Limited Company allows selling shares to public at large. Public limited company registration is governed by the Companies Act, 2013 and the Companies (Incorporation) Rules, 2014. To register a Public Limited Company, a minimum of seven shareholders and three Directors are required. A natural person can be both a Director and shareholder, while a corporate legal entity can only be a shareholder. Further, foreign nationals, foreign corporate entities or NRIs are allowed to be Directors and / or Shareholders of a Company with Foreign Direct Investment.

  1. Separate Legal Entity.
  2. It can be formed with minimum three Director & Seven members (No maximum limit).
  3. Limited Liability for Members.
  4. Shares are freely transferable.
  1. Minimum 3 Directors and 7 Subscribers
  2. Documents / Information of Directors and Subscribers
    • DSC
    • PAN (Self Attested Copy)
    • AADHAAR (Self Attested Copy)
    • Email ID
    • Phone No
    • Qualification
    • Occupation
    • Residential Status
    • Nationality
    • Place of Birth
    • Contribution
    • Interest in other entity if any
  3. Documents / Information of Company
    • 6 Proposed Names(Maximum)
    • Registered Address
    • Capital Structure
    • Main Object
    • Proof of Registered Office
      • Utility Bill
      • If Owned - No-Objection Certificate from the Landlord
      • If Rented - Rental Agreement Copy between the Company and the Landlord
  1. DSC
  2. DIN
  3. Document/ Information collection
  4. Name application
  5. Preparation of MOA And AOA
  6. Submission of Incorporation & other Forms
  7. Certificate of Incorporation
  8. PAN & TAN Allotment
Why Public Limited over Private Limited Company?

Public Limited Company gives advantage of raising large amount of capital from public. It can also easily raise loans from Banks and other Financial Institutions. It can issue debentures: secured as well as unsecured. Shares are freely transferable. Shares can also be listed on Stock Exchanges.

How long is the Incorporation of a Company valid for?

A company enjoys perpetual succession. Once incorporated, it will continue to exist until dissolved. It may be dissolved voluntarily or by law.

Can a Foreign National or an NRI be a Director in a Public Limited Company?

Yes, a Foreign National or an NRI can be a Director of a Public Limited Company in India after obtaining Director Identification Number. However, at least one Director on the Board of Directors must be a Resident Indian.

Can a Foreign National or an NRI hold shares of a Public Limited Company?

Yes, a Foreign National or an NRI or a Foreign Company can hold shares of a Public Limited Company subject to Foreign Direct Investment (FDI) Guidelines.

What are the other registration requirements of a Public Limited Company in India?
  • Register under Shops and Establishment Act
  • Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
  • Register for Professional tax
  • Register with Employees' Provident Fund Organization
  • Register with ESIC (medical insurance)
  • Filing for Government Approval before RBI/FIPB for Foreigners and NRI's
What if number of members fall below 7 after incorporation?

Members severally liable for debts where business is cariied on with fewer than 7 members for more than 6 Months if they are cognizant with this fact.