Public Limited Company India
Public Limited Companies are companies whose shares are traded in stock market or issues fixed deposits. These are also governed by Companies were governed by Ministry of corporate affairs and Companies Act, 2013 and Company Incorporation rules, 2014. To incorporate a public limited company in India there were minimum requirements which are as follows.
- Minimum members required are 7 and there is no limit on the maximum number of members.
- There is no restriction on transfer the shares
- Can invite money from the public subject to stringent compliances under the Companies Act, 2013, FEMA Regulations, SEBI Issue of Capital and Disclosure Requirements (ICDR) Regulations 2009, Securities Contracts (Regulations) Act 1956 etc
- Minimum number of directors required are 3 and atleast one of them should be Indian.
Benefits of Incorporating Public Limited Company India
- It acts as a separate legal entity.
- The liability of shareholders is limited to unpaid amount of sharecapital.
- Main advantage of incorporating a public limited is its perpetual existence.
- Raise funds from public.
Documents required for Incorporating the Public Limited Company India
- Identity and Address proof of Director and promoter.
a. Aadhar/ Voter ID/ Driving License
b. PAN card
c. Latest Bank Statement/ Utility bill.
- Proof of address for business
a. Rental Agreement/ Utility Bills along with NOC – if rented
b. Property Tax receipt – if owned
c. Copy of Notarized agreement.
- Incase of NRI passport to be submitted.
- Description of Objects and articles of the business.
- Passport size photograph of directors and specimen signature in blank document.
Procedure of Public Limited Company Incorporation
Step 1: Search for the availbility of name and reserve it through Reserve Unique Name (RUN) service in MCA portal. If the name is already registered then it wont be alloted again.
Step 2: Once name got approved then apply Digital signature and file DIN number for filing it DIR 3 form should be submitted to ROC.
Step 3: File SPICe form, draft MOA and AOA forms with required details.
Step 4: After filing SPICe form then upload it along with the prescribed form.
Step 5: Once the application got approved by ROC then ROC issues Certificate of Incorporation which includes PAN and TAN of company also.
General FAQ – Public Limited Company
1. Is there any minimum capital requirement ?
You can start a Limited Company with any amount of capital. However, fee must be paid to the Government for issuing a minimum of shares worth Rs.5 lakhs [Authorized Capital Fee] during the incorporation of the Company. There is no requirement to show proof of capital invested during the incorporation process.
2. Can NRI become a shareholder of public limited company ?
Yes, NRIs / Foreign Nationals / Foreign Companies can hold shares of a Limited Company subject to Foreign Direct Investment (FDI) Guidelines.
3. What are the FDI guidelines ?
100% Foreign Direct Investment is allowed in India in many of the industries under the Automatic Route. Under the Automatic Route, only a post-investment filing is necessary with the RBI indicating the nature of investment made. There are a few industries that require prior approval from the RBI, in such cases, approval must first be obtained from RBI prior to investment.