Public Limited Company Registration in India, Do it right. Get Expert Help!

A public limited company requires at least 7 shareholders to get established and registered in India. Such a large number of shareholders indirectly indicates that a Public Limited Company must raise a large amount of capital before its commencement and incorporation. Hence, it is best suited for businesses with a large scale of operations, a wide target consumer base, and huge prospects of growth and expansion in the near future.

It is not mandatory for Public Limited Companies to get listed on stock exchange platforms under the Companies Act 2013, unless such companies decide to trade shares and debentures to the general public. Note that, a Public Limited Company can sell shares or debentures to the general public on public platforms like stock exchange markets only.

The shares of a Public Limited Company can be acquired by individual investors, non-individual investors, and the general public. Besides resident Indians, investments in a public limited company is also permitted for non-resident Indians (NRIs), Foreign Institutional Investors (FIIs), Persons of Indian Origin (PIOs), and Qualified Individual investors (QFIs).

The liabilities of owners / shareholders in a Public Limited Company are limited to the unpaid amount of their respective subscribed capital only.

Post-incorporation, a Public Limited Company has to fulfill the following legal and tax compliances in every financial year:

• Annual Returns
• Annual Financial Statements
• Board of Director’s Report
• Annual Income Tax Returns
• Annual General Meeting of Shareholders
• SEBI Compliances
• Issue Public Company Prospectus

Public Limited Companies have several benefits, a few of which have been listed below.

• Limited Liability for owners
• Large capital investments
• Easy transfer of ownership
• Wider scope of fundraising
• Shares open for General Public to buy
• Perpetual Succession
• Separation between ownership and management
• Companies have legal and financial identity separate from its owners.

Foreign investment in a Public limited company is permitted for NRIs. However, foreign entities can invest in Public Limited Companies only if they are either Foreign Institutional investors (FIIs) or Qualified Institutional Investors (QFIs)

Yes, a foreign nation or an NRI can be appointed as the director of a Public Limited Company. However, a public limited company must have at least one resident director among all its directors.

Usually, it takes around 1-2 weeks to register a Public Limited Company, from the date on which the application for incorporation has been filed.

The name reserved for a Public Limited Company must end with the words “Limited Company”. For instance, if the name of a Public Limited Company is XYZ, it shall be registered as “XYZ Limited Company”.

As minors are incapable and ineligible of entering into contracts, they cannot buy the shares of a company. However, they can still hold its shares provided they have been gifted or transferred to him.

Public Limited Company Registration Fees depend on the authorized capital of the company, Stamp Duty in the State, and professional charges. Request a Full quotation here

The Board of Directors of a Public Limited Company is responsible to take its key managerial decisions. Such decisions are taken by passing resolutions in the board meetings held in a year, and are subject to the approval of shareholders of the company.

Public Limited Companies can raise funds by issuing bonds, debentures, and equity shares for sale to investors and the general public on stock exchange platforms.

You need 7 shareholders and 3 directors for Public Company formation. Also, make sure you have a valid name and a registered office address before incorporation.

At Setindiabiz, we help you navigate through the Public Company Registration process with ease. Here are the simple steps you need to follow:

• Apply for DSC & DIN of promoters
• Reserve Company name
• Draft MOA & AOA
• File Company registration application
• Receive Company Registration Certificate