Registration of Public Limited Companies in India
If you intend to obtain funds from the public through an initial public offering ("IPO"), a public limited company should be your preferred company structure in India because public limited businesses have been granted special access to the capital market under the Securities Laws.
Why are public limited companies preferred?
In India, public limited companies are seen as a more transparent corporate form than other business models. It allows investors to sell their shares and transfer their ownership in the company without any problems.
Foreign Direct Investment (FDI) goes to India's public limited companies because foreign exchange laws make it possible for them to get loans and equity participation from abroad.
Characteristics that can be found in a public limited company
A public limited company has the most flexible structure of all the company types. It gives a lot of space between operations and ownership.
Ownership of Stocks
A public company can offer ESOPS or stock ownership to its employees. Only limited companies can offer this feature of giving their stocks to current and potential employees.
Stock Exchange Listing
Shares can only be listed on Indian stock exchanges like the National Stock Exchange (NSE), Bombay Stock Exchange (BSE), and others by public limited companies. So, anyone can invest in the company by buying its stocks.
Raising Funds through IPOs
According to the Companies Act of 2013, only public limited companies can accept deposits from the public. So, the company can raise more money for its business operations and to grow.
Conditions for registering a public limited company in India
1. A Minimum of 2 Directors
2. A Maximum of 15 Directors
3. At least one director an Indian National
4. A Minimum of 2 Shareholders
What documents are needed to register a public limited company in India?
Directors and Shareholders
1. Copy of PAN Card
2. Identity Proof
a. Voter Card
c. Driving License
a. Bank Statement
b. Mobile Bill
c. Telephone Bill
d. Electricity Bill
4. Recent Passport Size Photo
5. Registered Office
6. Ownership Proof:
a. Electricity Bill
b. Gas Bill
c. Electricity Bill
d. Mobile Bill)
7. NOC (No-Objection Certificate) for Rented Property
Procedures to be Followed When Registering a Public Limited Company in India.
1. Selecting a unique name for the company.
2.The RUN application is used to save the name of the public limited company.
3. Getting the DSC and DIN numbers for the company's directors
4. Writing the company's MOA and AOA
5. Putting in an online application to start a Public Limited company
6. Ministry of Corporate Affairs' evaluation of the application
We can help you register as a public limited company in India.
We at Certpedia offer complete services for registering a public limited company in India. Our services include:
Company name research
Obtaining DSC and DIN
MOA and AOA drafting
Contacting the Ministry of Corporate Affairs again
You need the help of business experts to keep up with these requirements.