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A public limited company comes into existence by following and abiding by the various rules and regulations written down in the Companies Act, 2013. This is considered as an end goal by many startups, as becoming a successful public company reaffirms its brand image significantly. It also acts as an exit point for the previous investors.
If a person wants he/she can open a public limited company right from the beginning as well. In this section, we will be discussing on what are the requirements for incorporating a public limited company, the benefits, and the various compliances you need to be aware of when opening it.
Incorporating a public limited company can be quite troublesome with the numerous requirements and compliances it has to abide by when forming one. However it is a cup of tea for our team at HelpMyBiz! Contact us for the best advice and offers to get your company going today!
A public company means a company which -
(a) is not a private company's
(b) has a minimum paid-up share capital of five lakh rupees or such higher paid-up capital, as may be prescribed:
Provided that a company which is a subsidiary of a company not being a private company, shall be deemed to be public company for the purposes of this Act even where such subsidiary company continues to be a private company in its articles;
Let us understand the benefits we can avail of by incorporating a public limited company.
According to the Companies Act,2013 a public limited company is to carry an identity of its own which is separate from its Directors, shareholders, management, creditors, and debtors.
The assets of the directors and shareholders is safe and are not to be touched in the case of insolvency of the company.
A public company undergoes strict scrutiny before it is formed. Even after its formation, it needs to publish its annual reports publicly. This rigorous scrutiny gives confidence to investors and banks during fundraising.
A public company can choose to list on the stock market. This paves way for higher brand value and reputation compared to its peers.
Since the company can list on the stock market, its shares become highly liquid as they can be traded between any 2 individuals with ease.
A public company has a higher chance of getting recognized than a small private company.
The company needs to be registered under an exclusive name. A minimum of 2 names are sent to the Registrar of Companies during registration. You can verify whether your options do not sound similar to any current company by checking the mca portal.
You need to have at least 7 people interested in investing in your public limited company. A director can also be considered a shareholder.
The company needs to mention a registered office from where it would initially conduct its business operations.
The minimum paid-up capital required for a public limited company is 500,000/-
The objective behind forming the company needs to be clear.
Scanned Copy of Pan Card
Scanned Copy of Aadhar Card/ Voter Card
Address proof (Bank Statement, Mobile/Telephone Bill)
3 Passport size photos
Email ID and mobile number
Scanned NOC (No-Objection Certificate)
Utility Bills (Gas Bill/Electricity Bill)
Rent Agreement – If the property is rented.
Get in touch with our expert to get a better idea of the various technicalities involved in setting up a public limited company. Get expert suggestions on whether this business structure fulfills your requirements. After this, a Customer Relationship Manager will be assigned to help you with the process. We also request you to pay 50% of the fees upfront.
Post receiving the fees we send your Digital Signature Certificate (DSC), Director Identification Number (DIN), and company name for approval.
After DSC, DIN and Name are approved by the Registrar of Company a draft of Memorandum of Association (MoA) and Article of Association (AoA) is finalized and sent to you for your approval. We further request the remainder of the dues to be settled.
Finally, the MoA and AoA are submitted to the Registrar of Company (ROC) and TAN and PAN are applied for at the same time.
The registration process is complete and all the documents are sent to you immediately. We ensure you are satisfied with our service.
Our services are 100% online, so you can open your public limited company from the comfort of your home anytime! We strive to ensure that each step of the process is completed with perfection.
*(Exclusive of Government fees & taxes)
A public limited company is subject to the strictest compliances and scrutiny among all types of business structures. This makes it important for you to follow each of them to the point and within the due date.
We at helpmybiz strive to make our client's business journey easier by taking the load off their shoulders and ensuring that each of the compliances is met accurately well before the due date arrives! Get in touch with the expert today!
Below we mention some of the important compliances we need to take care of right after the company is formed.
Details of the allotment of shares of the company need to be properly mentioned and maintained in the register of allotment.
The company needs to declare its statutory auditor within 30 days of incorporation and file form ADT – 1 with the Registrar of Companies.
The first board meeting needs to be called within 30days of the formation of the company. The notice should be delivered to the attendees at least 7 days before the meeting date. We also need to ensure the minutes of the meeting are recorded and finalized within 30days of the meeting.
The directors of the company need to be completely transparent about their interest in other companies, a group of companies, or any individuals or associations. They also need to elaborate on the nature of interest or concern and the shareholding they have in that company. Further, they need to keep on updating the board of directors in case any changes arise. All of this is filed in form MBP -1.
After a company has been formed, it is important for it to apply for its GST number. It becomes particularly compulsory if your business relates to inter state transactions, ecommerce transactions or an annual turnover of more than 20 lacs.
Form AOC – 4 needs to be filed every year with the Ministry of Corporate Affairs. We need to ensure it contains several documents related to the financial health of the company like the Balance sheet with its notes, Profit and Loss Account, Cash flow statement, reports from the auditor and board, and any other relevant documents. We also need to file form MGT – 7 before 30th September every year. These are just 2 important forms among the many different forms a public limited company needs to file annually.
Our team at HelpMyBiz understands how important it is to file for the compliances on time so as to avoid the unnecessary payment of penalties and fines. We believe in delivering our work before time and keeping it professional. If you have any queries or doubts feel free to request a call back from the experts today!
Decade of experience in all sectors for tax & compliance services in India.