How to Register a Public Limited Company - A Step-by-Step Guide

What is a Public Limited Company?

A public limited company is registered under the Companies Act of the year 2013 as well as the shares of the company can be offered to the public. This type of company has a separate legal existence and allows the shareholders to limit their liability to the amount unpaid on their shares.

Some of the most important features of a public limited company are listed below:

• Seven Members minimum: a minimum of seven members are required.
• Minimum Paid-Up Capital: The minimum capital will vary as per the rules and regulations.
• Stock Exchange Listing: Public companies can raise capital by listing shares on the stock exchange.

The advantages of public limited companies make them a favorite among entrepreneurs and investors.

Advantages of Public Limited Companies

• Access to Capital: Public companies can raise capital through an IPO. This helps the company expand and grow.
• Liability: Shareholders liable up to shareholding.
• High Credibility: With regard to investor and creditor confidence as well as a favorable response among its suppliers and customers.
• Transferable Shares: Such shares could be readily transferable to its shareholders with this feature so as to be easily liquidable.
• Investor attraction: Attraction of many investments for enhancing faster growth.

And thus the Lawyer for such company will render its incorporation procedure together with that compliance process hassle less.

Method for Public Company's incorporation in India

1. Legal Conditions: Know that your company fulfills the following conditions before the incorporation process takes place,
   • Minimum members: A PLC has at least 7 shareholders and 3 directors.
   • Unique Name: The name proposed by the company needs to be unique according to the directions mentioned in the Companies Act.
   • Registered Office: It has a defined address in India.

   Now, the best time to consult the lawyer for public limited company to prevent wastage of time and errors caused.

2. Digital Signatures: First of all, for the incorporation, one needs to be in possession of DSC in respect of all the directors as well as any authorized signatory. In this process of incorporation, DSCs are in demand because, in this type of incorporation all the documents should be digitally signed.
3. Director Identification Number (DIN): For public limited company, every director is required to have a DIN. A DIN can also be accessed by filling the SPICe+ form on the MCA portal.
4. Name Reservation:

   There must be finalization and reservation of a unique name for the Company with the ROC. Such name must:

   • Be unique, not similar to any other names available as being used by any other Companies.
   • In conformity with the Naming Guidelines issued by the MCA.

   This can be achieved through the use of the service RUN (Reserve Unique Name). A solicitor for a public limited company may assist in the preparation of an application for name which is compliant with the naming guidelines to prevent rejection.

5. Memorandum and Articles of Association:

   Since these define the purpose of the company and also the guidelines for its working respectively, these are required to be done very elaborately to meet with the vision of the company and legal compliances also.

   Use an attorney for preparing MOA and AOA so that it can be used accordingly as per legal requirements.

6. SPICe+ Form Filing:

   SPICe+ is the short form for the word - Simplified Proforma for Incorporating Company Electronically Plus. The SPICe+ is applied for:

   • Certificate of incorporation.
   • Company's PAN and TAN.
   • Application for obtaining GST registration.

   Incorporation has thus made SPICe+ more user-friendly by incorporating several services within one single application.

7. Stamp Duty and Fees Payment:

   Stamp duty and Registration fees will be ascertained by authorized capital and registration state wise. In case the same is paid then incorporation documents gets processed by the ROC.

8. Certificate of Incorporation:

   Once all of these above the ROC issues certificate of incorporation COI. With the help of CIN that is printed there the registration fact of company is authenticated.

9. Post-Incorporation Compliance:

   To follow the statutory provisions, after incorporation, the following are the procedures for public limited companies:

   • Audit to be constituted within 30 days.
   • First meeting of the Board to be arranged within 30 days.
   • ROC to file annual return as well as its financial statement.
   • All of those rules in SEBI it is going to ask for its listing of stocks if shares will be issued into stock exchange.

The Job of Public Limited Company Lawyer

A lot of complicated procedural and legal formalities are involved in the registration and operation of a public limited company. A lawyer for a public limited company can assist in the following manners:

• Draft incorporation documents.
• Companies Act, 2013 compliance.
• Dealing with disputes over shareholders and directors.
• Guiding the process of IPO and listing in stock exchange.

For example, for companies in metropolitan cities like Delhi, the public limited company attorney in Delhi can offer specialized services that are focused on urban and mass operations.

Challenges Encountered in Public Limited Company Registration

• Even drafting MOA, AOA, and other documents is a sensitive task.
• A company may not adhere to the rules of MCA or SEC.
• Cost of Incorporation: It is pretty costly as there are legal, professional, and governmental charges.

Employment of a well-experienced lawyer will solve the problem with an appropriate solution regarding issues arising after incorporation of a public limited company.

Public limited company registration in India has been defined by the Companies Act, 2013. Although a bit of legal and procedural steps involve it, with all these steps, the added benefits of getting a public limited company such as access to more capital, reduced liability, credibility make all worth.

It helps that a good lawyer for a public limited company keeps everything running smoothly and efficiently, in compliance with all the legal requirements. Whether you set up a business in Delhi or some other region, professional guidance would help navigate any complexities and help you establish a robust foundation for your company.

The heart of the Indian corporate landscape comprises public limited companies, with great investment and growth potential. Thus, entrepreneurs can exploit the full business venture potential only if adequate legal support and fulfillment of the statutory requirements are obtained.