Public Limited Company Registration

A public limited company provides limited liability to its owners and management team. A public limited company can raise capital by selling shares to investors, which is not the case for a private limited company. To establish a public limited company, at least three directors are required, and there is no maximum limit on the number of members. However, it is subject to stricter regulatory requirements than a private limited company.

A public limited company has many similarities to a private limited company, but it also offers additional benefits such as ease of transferability, borrowing capacity, limited liability, and perpetual existence. It is registered under the Companies Act, 2013, like any other company in India.

A public company enjoys the advantages of limited liability for its members and has the right to sell its shares to raise capital. A public limited company must have a minimum of three directors and at least seven members, with no limit on the maximum number of members. It is subject to more rigorous rules and regulations than a private limited company. It offers all the benefits of a private limited company, including greater transparency and ease of ownership and shareholding transfer. Differences between a public limited company and a private limited company include title, shares, composition, management, and directors, among others.
 

1. Attractive to investors: Public Limited Companies are preferred by investors and other parties due to their well-structured and transparent business structure. If someone wants to raise capital for their business and sell ownership, this type of company is a good option.
2. Best for heavy investment: Public Limited Company is the most suitable business structure for serious investment.
3. Easy to raise funds and loans: Public Limited Company can list itself on various stock exchanges in India and raise capital from the stock market and interested investors. It can also raise minimum paid-up capital for public companies, bank loans, and institutional investors.
4. Perpetual existence: A Public Limited Company has "perpetual succession," which means it has uninterrupted existence until legally dissolved. It continues to exist regardless of changes in membership or the departure or death of any member as it is a separate legal person.
5. Easy transfer of shares: Exiting from a public company limited by guarantee is easy, as only shares of the company have to be transferred to the investor or purchaser along with share transfer forms.
6. Property ownership: A Public Limited Company is a juristic person that can own, acquire, enjoy, and dispose of properties in its own name. Shareholders do not have the right to claim the company's property as long as it is a going concern.
    

To register the ownership of a public limited company in India, the following conditions must be met as per the Company Act, 2013:

• A minimum of seven members is required to form a public limited company.
  There is no limit on the maximum number of members.
  A requirement for an Indian company is to have at least one director who is a resident of India.
  A minimum paid-up capital of approximately Rs 5 lakhs is required.
  Shares allocated to members are easily transferable.
  Public Limited Companies can raise funds or investments from the general public through open requests and invitations by selling the company’s shares and accepting funds or fixed deposits.
  The name of the public limited company must be distinctive and cannot be similar to or identical to any existing company name or trademark.
  These companies must have either 'public limited' or 'private limited' in their company names.
   

There are several points of contrast between these two types of companies. Here are some major differences between them:
 

• PAN Card
• Passport for foreign nationals.
• Proof of nationality for foreign nationals
• Identity proof such as Passport, Driving License, Voter ID, etc.
• Address proof for directors and shareholders
• Two passport-size photos
• Rent agreement or conveyance attached with rent receipts
• Latest utility bills such as electricity bills, phone bills, or bank statements that are not older than two months
• NOC provided by landlord
• DSC (Digital Signature Certificate)

Note: The required documents for a foreign director depend on their nationality and country of residence. 

For directors from Commonwealth countries, the documents must be notarized. 

For directors residing in a country that is a signatory to the Hague Convention, the documents must be notarized and apostilled. 

For directors who do not fall into either of these categories, the documents must be notarized and consumerized.

• Reserving the company name through application
• Applying for Digital Signature Certificate (DSC) for the Director
• Acquiring Director Identification Number (DIN)
• Obtaining necessary approvals from relevant authorities
• Submitting required documents to the Registrar of Companies (ROC)
• Drafting Memorandum of Association (MoA), Articles of Association (AoA), and other necessary documents, and filing the E-MoA and E-AoA for public limited company registration
• Incorporating a public limited company requires a minimum of- Three directors
• Receiving the Certificate of Incorporation, PAN and TAN  for the public limited company, which marks the start of its operations
• Opening a bank account in the company's name for smooth functioning.