Public limited companies (PLCs) in India are a popular business structure for large enterprises that plan to raise capital through public offerings and have a wider shareholder base. Public Limited Company Registration in Delhi NCR , India is a structured process governed by the Companies Act, 2013. It offers limited liability to its shareholders while allowing the business to grow by attracting external investments through shares.
What is a Public Limited Company Registration in Delhi NCR?
A public limited company (PLC) is a type of corporation that is allowed to offer its shares to the public, often via the stock market. It enjoys greater credibility and has a more transparent organizational structure, which attracts investors. Unlike private limited companies, public limited companies have no restrictions on the maximum number of shareholders.
Key Features of Public Limited Company Registration in Delhi NCR
- Minimum Number of Directors: A public limited company must have at least three directors and a minimum of seven shareholders.
- Shareholding: It allows the public to subscribe to its shares and raise capital through public issues.
- Limited Liability: Shareholders are only liable for the unpaid amount on their shares.
- Transferability of Shares: Shares of public limited companies can be freely traded on the stock exchange.
- More Compliance: Public limited companies are subject to stricter regulations under the Companies Act, 2013, and Securities and Exchange Board of India (SEBI) regulations.
Requirements for Public Limited Company Registration in Delhi NCR
Before initiating the registration process, you must ensure that your company complies with the basic requirements set out by Indian law.
- Minimum Capital Requirement:
There is no minimum paid-up capital requirement under the Companies Act, 2013, for a public limited company. However, companies generally maintain a reasonable capital structure to be attractive to investors. - Minimum Number of Directors and Shareholders:
- Directors: At least three directors must be appointed. Among them, one must be a resident of India.
- Shareholders: A minimum of seven shareholders are required, though there is no limit on the maximum number.
- Unique Name:
The company’s name should be unique and should not resemble any existing company name. The name must end with “Limited,” denoting that it is a public company. - Registered Office Address:
A valid address in India is required as the registered office of the company. This address will be used for all official communication. - Digital Signature Certificate (DSC):
All directors need to obtain a DSC, as the entire process of company registration is online, and documents are submitted digitally. - Director Identification Number (DIN):
Every director of the company must have a valid DIN, which is a unique identification number provided by the Ministry of Corporate Affairs (MCA). - Memorandum of Association (MoA) and Articles of Association (AoA):
The company must draft and file MoA and AoA, outlining the objectives of the company and the rules governing its operations.
Steps for Registering a Public Limited Company in Delhi NCR
Step 1: Obtain Digital Signature Certificate (DSC)
The first step in Public Limited Company Registration in Delhi NCR , India is to obtain DSCs for all the directors. Since the process is conducted online, the DSC is essential for signing electronic forms.
Step 2: Apply for Director Identification Number (DIN)
After obtaining the DSC, the next step is to apply for a DIN for the proposed directors. This can be done while filing the SPICe+ form (Simplified Proforma for Incorporating Company Electronically Plus).
Step 3: Name Reservation
You need to submit a unique name for your public limited company through the RUN (Reserve Unique Name) service provided by MCA. The name must comply with the naming guidelines specified under the Companies Act, 2013.
Step 4: File SPICe+ Form
The SPICe+ (INC-32) form is an integrated web form used for the company incorporation process. It includes the application for the following:
- Incorporation of the company
- DIN for directors (if not already obtained)
- PAN and TAN for the company
This form also enables you to apply for GST registration, PF registration, and Employee State Insurance (ESI), all in one go.
Step 5: Submit MoA and AoA
Once the SPICe+ form is submitted, you will be required to upload the Memorandum of Association (MoA) and Articles of Association (AoA). These documents define the objectives and the internal rules of the company, respectively.
Step 6: Issue of Incorporation Certificate
After the submission of all necessary documents and payment of the required fees, the Registrar of Companies (RoC) will verify your application. Upon successful verification, the RoC will issue the Certificate of Incorporation. This document serves as legal proof of your company’s existence.
Step 7: Obtain PAN and TAN
After incorporation, the company will be issued a PAN and TAN. The PAN (Permanent Account Number) is essential for tax purposes, while the TAN (Tax Deduction and Collection Account Number) is used for deducting tax at source.
Post-Incorporation Compliance
Public Limited Company Registration in Delhi NCR , India there are several compliance requirements that need to be followed:
- Appointment of Auditors: A company is required to appoint an auditor within 30 days of incorporation.
- Annual General Meeting (AGM): A public limited company is required to hold an Annual General Meeting (AGM) within six months of the end of the financial year.
- Filing of Annual Returns: Public companies must file their annual returns and financial statements with the RoC every year.
- Statutory Compliance: Companies must comply with provisions related to SEBI regulations, corporate governance norms, and disclosure requirements.
Advantages of Public Limited Company Registration in Delhi NCR
- Capital Generation:
Public companies can raise capital from the public by issuing shares, which can be traded on stock exchanges. - Limited Liability:
Shareholders’ liability is limited to the amount unpaid on their shares, which reduces personal financial risk. - Enhanced Credibility:
A public limited company’s reputation and transparency attract more business partners, creditors, and investors. - Transferability of Shares:
Shares of a public limited company are easily transferable, providing liquidity to shareholders.
Conclusion
Public Limited Company Registration in Delhi NCR , India offers numerous advantages, especially for large businesses seeking capital growth. While the registration process requires compliance with various legal obligations, the benefits of limited liability, easy access to public capital, and enhanced credibility make it a compelling option for entrepreneurs and business owners. It’s essential to follow the correct procedures and maintain regulatory compliance to ensure smooth business operations.