A public limited company is a type of Limited Liability Company which can offers share to the public. It has a limited liability. Public Limited Company might offer general public stocks of the company either privately or by Initial Public Offering via trades of the stock market.
Procedure for incorporation:
Coming to the steps to incorporate a public limited company then the steps are very clear and precise.
1. Digital Signature Certificate - The first step towards incorporating a company is to get the Digital Signature Certificate. It is the electronic signature of the director of the company and is can be availed from any of the government approved vendors like TCS, e-Mudra, etc. DSC is important because all the documents that will be submitted or uploaded to the Ministry of Corporate Affairs (MCA) website are uploaded in electronic form and such form requires electronic signature.
2. Director Identification Number - DIN is a unique identification number allotted to the director. Every Director proposed to be appointed in the company should hold a valid DIN.
The above two are the pre-requisites to register a firm which is followed by the following steps:
3. Getting name approval - Once you have decided to go ahead with the registration of the Company it is important that you get the name of your entity approved by MCA. You have the leverage Six different options for the name of the company. Ensure that you stick to the name guidelines suggested by MCA.
This approval is provided subject to certain conditions:
- Make sure that there should be no other company registered with the same name as your company.
- The last word of the Public Limited company should always have "Limited" mentioned at the end of the name of the Company.
- Once you have filed the application for the name, Registrar of Companies (ROC) informs the applicants of the status of their name approval.
4. Filing of Incorporation Documents - If the name of your Limited Company is accepted by ROC you need to file Memorandum of Association(MOA), Article of Association (AOA) and some declaration and affidavits to proceed with company incorporation. This has to be done within a period of 60 days from the date of filing the application for name approval. In case you fail to submit the Incorporation Documents, the name will expire after the said 60 days.
MoA and AoA
These are the next most important documents that need to be submitted with the ROC. The Memorandum of Association entails information about the constitution of the companies, its objectives and scope of work along with the relation of the company with the world outside.
The article of Association, on the other hand, consists of rules and regulations of the company which tells how the company will manage its internal environment.
5. Issue of Certificate of IncorporationROC issues a certificate of incorporation only after it receives all the documents supported with proof and registration fees. The registration fee for company registration depends on the share capital of the company which is mentioned in a memorandum of Association. Fee also vary from state to state due to different rate of stamp duty.
The Public Limited Company can issue subscription to the public, the details of which should be mentioned in the prospectus. In such a case, it is mandatory to submit the prospectus with the ROC. If the company does not approach the public for the required capital and obtains it privately then "Statement in Lieu of Prospectus" should be filed with ROC.
Pan card is mandatory documents for Indian National and Passport is a mandatory document in case of foreign national.
ID Proof of Director/promoter: Aadhaar Card, Voter ID, Driving License, Passport (any one of these)
Residential proof Director/promoter:Bank Statement, Electricity Bill, Landline telephone bill, Post-paid mobile Bill (any one of this and documents shall not older than 2 months)
For Office address proof: Electricity bill, Landline telephone bill, Post-paid mobile Bill, Gas Connection Bill (any one of these) along with NOC and lease agreement/ rent agreement.
Disclaimer: Statements and opinions expressed in articles are those of the author's personal views.
About the author: Satyendra Kumar Mishra
Satyendra Kumar Mishra is the founder and CEO of EmpressLegal.com which was founded with the singular objective of offerings the highest quality corporate and incorporation services to its clients all over the globe. Since its foundation, EmpressaLegal.com has helped entrepreneurs across India to incorporate their businesses in a fast and secure manner.