Public Company Registration In India

As per Section 2(71) of the Companies Act, 2013- “Public company” means a company which

(a) is not a private company and;
(b) has a minimum paid-up share 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

Public Company allows to sell shares to investors just increase their capital. Public limited company has most of the same characteristics as the Private limited company.

Minimum requirement of directors are three. It has more stringent regulatory requirements compared to a Private Limited Company. Identifying marks of a public limited company are name, number of members, shares, formation, management, directors and meetings, etc.

Shares of a company limited by shares are transferable by a shareholder to any other person. Filing and signing a share transfer form and handing over the buyer of the shares along with share certificate can easily transfer shares.  No shareholder can make any claim upon the property of the company so long as the company is a going concern.

A company enjoys better avenues for borrowing of funds. It can issue debentures, secured as well as unsecured and can also accept deposits from the public, etc. Even banking and financial institutions prefer to render large financial assistance to a company rather than partnership firms or proprietary concerns.

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    Registering a Public company in India involves several steps and compliance requirements. Here is a general overview of the process:

    1. Obtain Digital Signature Certificate (DSC):
    The first step is to obtain a Digital Signature Certificate for the proposed directors of the company. This is necessary for filing documents electronically.

    2. Director Identification Number (DIN):
    All directors of the company need to obtain a Director Identification Number (DIN). This can be obtained by filing an online application with the Ministry of Corporate Affairs (MCA).

    3. Name Approval:
    Choose a unique name for the company and check its availability. You can apply for name approval through the MCA website.

    4.Memorandum and Articles of Association:
    Draft the Memorandum of Association (MOA) and Articles of Association (AOA) of the company. These documents define the company’s objectives and rules of operation.

    5. Filing Forms with the Registrar of Companies (ROC)
    File the required incorporation forms (e.g., SPICe Form) along with the MOA and AOA, and other necessary documents with the ROC. This can be done online.

    6. Payment of Fees:
    Pay the required fees for filing the incorporation documents. The fee depends on the authorized capital of the company.

    7. Certificate of Incorporation:
    Once the ROC verifies the documents and is satisfied, they will issue a Certificate of Incorporation. This certificate serves as proof of the existence of the company.

    8. PAN and TAN Application:
    Get Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) with Incorporation.

    9. Bank Account:
    Open a bank account in the name of the company. The bank will require the Certificate of Incorporation, MOA, AOA, and other relevant documents.

    10. GST Registration:
    If your company’s turnover is expected to exceed the prescribed limit, you may need to register for Goods and Services Tax (GST).

    11. Compliance Requirements:
    Ensure compliance with ongoing regulatory requirements, such as filing annual returns, conducting annual general meetings, and maintaining statutory records.

    12. Professional Assistance:
    It is advisable to seek professional assistance from a chartered accountant or company secretary to ensure compliance with all legal requirements.

    Note:

    The process may evolve, and it’s crucial to check for the latest regulations and requirements on the Ministry of Corporate Affairs (MCA) website or consult with a webetax professional.

     Additional Tips:

    Stay updated on changes in company law and compliance requirements. Engage with webetax professional as we are specializing in company registration for accurate guidance.

    Keep in mind that the above steps provide a general overview, and the specific requirements may vary based on the nature of your business and any updates in regulations. It’s recommended to consult with webetax professionals or legal experts for personalized guidance.

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