How to Start a Public Limited Company

 

A Public Limited Company is a type of business structure that allows for public ownership through the sale of shares. Registration of a Public Limited Company in India is governed by the Companies Act, 2013 and requires adherence to various legal formalities. Here's a step-by-step guide to the process of registering a Public Limited Company in India:

1. Obtain Digital Signature Certificate (DSC): The first step is to obtain a DSC, which is an electronic signature issued by the certifying authorities. The DSC is used to sign the various forms and documents required for registration.
2. Choose a Company Name: The next step is to choose a unique name for the company, which should not be similar to any existing company names. A company name can be proposed through the MCA portal or through a professional company secretary.
3. Draft Memorandum of Association (MOA) and Articles of Association (AOA): The MOA outlines the main objectives of the company, while the AOA specifies the rules and regulations governing the company's operations. These documents must be drafted and signed by all subscribers to the company's share capital.
4. File an Application for Company Registration: Once the above documents are ready, an application for registration can be filed through the Spice+ form, which is an integrated web form for company incorporation, name reservation, and several other applications. The form requires details such as the company's registered office address, directors' details, share capital, and subscribers' details, among others.
5. Payment of Fees: The applicable fees for registration must be paid online through the MCA portal. The fees vary based on the company's authorized capital and other factors.
6. Certificate of Incorporation: After the MCA reviews the application and all documents, and if everything is in order, a Certificate of Incorporation (COI) will be issued. The COI confirms that the company has been incorporated and is eligible to conduct business. Along with COI, PAN and TAN is also generated the MCA.

Pre-requisites of Law:

• Minimum Directors and Shareholders: A Public Limited Company should have at least three directors and seven shareholders. At least one of the directors should be an Indian resident.
• Registered Office Address: The company should have a registered office address in India. It can be a commercial or residential property, and the company should provide proof of ownership or a lease agreement.
• Object Clause: The company should specify its main objects in the Memorandum of Association (MOA). The MOA should include the company's name, objectives, registered office, and details of the subscribers.
• Authorized Capital: The authorized capital is the maximum amount of capital that the company can raise through the issuance of shares. The company should specify the authorized capital in the MOA.

In conclusion, registering a Public Limited Company in India is a complex process that requires compliance with various legal formalities. It is advisable to consult with a legal professional or a company secretary to ensure that all the prerequisites and requirements are met before initiating the registration process.

Disclaimer: The content of this blog is for informational and educational purposes only and does not constitute legal advice or opinion.