Public limited company registration
According to the Companies Act of 2013, a Public Limited is a company that has limited liability and offers shares to the general public. A public company’s stocks can be acquired by anyone, either by initial public offering or by trades on the stock market. A Public Limited Company’s Registration in India is strictly administered by the Registrar of Companies India (ROC). A Public Limited Company is supposed to publish its financial health to its shareholders. More often, companies that need huge capital investments choose to be registered as a Public Limited Company. A public limited company is a voluntary association of members that are incorporated and, therefore has a separate legal existence, and the liability of whose members is limited.
A public company’s unique features are that its name ends with the words ‘limited’, no requirement of a minimum paid-up capital, having at least 3 minimum directors and 7 shareholders, and no restrictions on the transfer of shares. The liability of the members of a public company is limited to the amount of investment in shares of the member. Lastly, there is no restriction on the issue of securities to the public.
Main features:
A public limited company is a form of business organization that operates as a separate legal entity from its owners. It is formed and owned by shareholders.Shares of a public limited company are listed and traded at a stock exchange market freely. Shareholders of a public limited company are limited to potentially losing only the amount they have paid for the shares they own.
Advantages:
- Its formation, working and it’s winding up all its activities are strictly governed by rules, laws, and regulations.
- A company must have a minimum of seven members but there is no limit as regards the maximum number.
- The company collects Its capital by the sale of its shares and those who buy the shares are called the members. The amount collected is called the share capital.
- The shares of a company are freely transferable and that too without the prior consent of other shareholders or subsequent notice to the company.
- The liability of a member of a company is limited to the face value of the shares he owns. Once he has paid the whole of the face value, he has no obligation to contribute anything to pay off the creditors of the company.
- The shareholders of a company do not have the right to participate in the day-to-day management of the business of a company. This ensures the separation of ownership from management. The power of decision-making in a company is vested in the Board of Directors, and all policy decisions are taken at the Board level by the majority rule. This ensures the unity of direction in management.
- As a company is an independent legal person, its existence is not affected by the death, retirement, or insolvency of any of its shareholders.
- More investments: The public prefers to invest in a public limited company due to its well structured and transparent business model.
- Easy to raise funds and loans: Public Limited companies can raise funds through bank loans, the general public, and Institutional investors.
- Public limited companies are strictly regulated and are required by law to publish their complete financial statements annually. This ensures that they reveal their true financial position to their owners and potential investors so that they can determine the true worth of their shares.
Process of Registration of a Public Limited Company:
- Fulfilling all the Legal Requirements for Incorporation like having a minimum paid-up share capital, the number of directors, and shareholders.
- Obtaining DIN and DSC for all the Proposed Directors.
- Obtain a Digital Signature Certificate (DSC) for promoters and directors. The Registered Office address must be registered with the Registrar of Companies.
- Application for Company Name must be filed in the RUN form of the Ministry of Corporate Affairs.
- The crucial documents of the Company, i.e, MoA and AoA have to be executed.
- Submission of Documents to ROC for verification.
- The ROC registers the company and issues a Certificate of Incorporation along with the CIN (Corporate Identification Number) of the Company.
- Finally, the company has to apply for a Certificate of Commencement of Business within 180 days of receiving the COI, stating that all the subscribers have paid the subscription money.
Documents Required for Registration
- Copies of the identity documents of all the Directors as well as Shareholders- Aadhar Card, Voter Card, PAN card, Proof of Address.
- Utility bill of the proposed office i.e. proposed registered office for the company.
- A NOC (No Objection Certificate) from the landlord where the office of the company will be situated.
- DSC (Digital Signature Certificate) of all the Directors
- DIN (Director Identification Number) of all the Directors
- Memorandum of Association (MoA)
- Articles of Association (AOA)
Service Inclusions
Professional Fees
Service Exclusions
GST, Government Fee, and other Additional Taxes
Process followed by White Code Legal:
- The Client has to register themselves on our website.
- Once the Client is registered, we raise a Service Request.
- The Client receives a proforma invoice with an option to confirm and pay now or pay later.
- Once the Client confirms, our dedicated relationship manager liaisons with our experts and clients share a list of client information required to deliver the service.
- Once we receive the information, we take the required steps to deliver the service and the service request is closed.
Why White Code Legal?
At White Code Legal we prioritize and always strive to deliver excellence. Keeping the focus on maintaining affordable prices and delivering 100% client satisfaction we aim to make worth every penny our clients spend with us, and build a lasting relationship with them.
