The process of registering a public limited company is governed by the Companies Act, of 2013 and requires compliance with various regulations and guidelines set forth by the Ministry of Corporate Affairs. Incorporating a Public Limited Company (PLC) provides you security and enjoys far more credibility than other business forms. This form of business also enjoys all the rights of a corporate entity with limited liabilities and it is an ideal choice for small and medium-scale enterprises who wish to raise equity capital from the general public.

It is important to note that all businesses are not suitable to register as a Public Limited Company. It is typically only appropriate for businesses that are large and well-established and have a significant track record of financial success.

Compared to a private limited company, a public limited company has stricter rules and regulations. The process of registering a Public Limited Company is complex and involves a number of steps. The first step is to choose a name for the company, which must be unique and not already in use by another company. The next step is to prepare the Memorandum of Association and Articles of Association, which set out the company’s objectives, rules, and regulations.

Legal Corner is a service provider in Kolkata that assists businesses with the registration of public limited companies. They offer a comprehensive range of services, including obtaining DSC and DIN, applying for the name of the company, preparing the MOA and AOA, filing the registration documents with the ROC, and obtaining the Certificate of Incorporation.

Benefits of Public Limited Company Registration

Public Limited Company Registration is a popular choice among entrepreneurs and businesses in India. It offers several benefits that make it an attractive option for those looking to set up a business. Here are some of the key benefits of Public Limited Company Registration:

Limited Liabilities for the Shareholders of the Company

One of the most significant advantages of registering as a Public Limited Company is limited liability. Shareholders of the public company enjoy the benefits of limited liabilities under which their assets are safe and cannot be used to clear the debts and losses of the company. Despite it, the shareholders are responsible for their legal offenses. All the members, directors and shareholders enjoy this right and their assets cannot be seized by any bank, creditors or government bodies.

Perpetual Succession

A public limited company is considered a corporate body that has perpetual succession. This means in case of death, retirement, insanity, and insolvency of one or more members/shareholders/ directors, the company continues its existence.

Improved Capital of the Company

In a PLC, the general public is invited to buy the shares of the company. Hence, anyone can invest in a public company that improves the capital of the proposed company.

Borrowing Capacity

A public company can enjoy unlimited sources for borrowing funds. It can issue equity, debentures and can accept deposits from the general public by selling its shares. Moreover, most financial institutions find public companies more prominent than other unregistered companies.

Fewer Risks

Since public companies can sell their shares to the public, it lesser the scope of unsystematic risks in the market.

Better Opportunities for Growth and Expansion of the Company

Fewer risks lead to better opportunities so that the company can grow and expand by investing in new projects from the funds raised by selling its shares in the market.

Checklist for Registering a Public Limited Company in India

Here are the eligibility criteria for public limited company registration in India:

Minimum number of shareholders:

A public limited company must have a minimum of seven shareholders.

Minimum number of directors:

A public limited company must have at least three directors, and at least one director must be a resident of India.

Director Identification Number (DIN) :

All directors must obtain a Director Identification Number (DIN) from the Ministry of Corporate Affairs (MCA).

Authorized capital:

The company must have a minimum authorized capital of Rs. 5 lakhs.

Registered office:

The company must have a registered office in India.

Name availability:

The proposed name of the company must be available and not violate any trademark laws.

Compliance:

The company must comply with all the rules and regulations of the Companies Act, 2013 and other relevant laws.

Meeting these eligibility criteria is essential for registering a public limited company in India. It is important to note that eligibility criteria may vary based on the type of business and industry. It is advisable to seek professional guidance from a company registration service provider to ensure compliance with all the necessary regulations and requirements.

Procedure of Register a Public Limited Company in Kolkata

Registering a Public Limited Company in Kolkata can seem like a daunting task, but it’s a necessary step for businesses looking to expand and grow. The process involves several legal requirements and formalities that must be completed with precision and accuracy. The procedure for registering a Public Limited Company (PLC) in Kolkata is as follows:

1. Obtain Digital Signature Certificate (DSC) and Director Identification Number (DIN):

   The first step is to obtain a DSC and DIN for all the proposed directors of the company. This can be done by submitting the required documents online through the Ministry of Corporate Affairs (MCA) portal.

2. Name Approval:

   The next step is to choose a unique name for the company and submit it for approval to the Registrar of Companies (ROC). The name should not be identical to any other registered company or trademark.

3. Memorandum and Articles of Association:

   The Memorandum of Association (MOA) and Articles of Association (AOA) are legal documents that outline the objectives and rules of the company. These documents need to be drafted and filed with the ROC.

4. Filing of Forms:

   The next step is to file the necessary forms with the ROC. These include Form 1 for name approval, Form 7 for incorporation, and Form 32 for the appointment of directors.

5. Payment of Fees:

   The registration fees for a Public Limited Company in Kolkata vary based on the authorized capital of the company. The fees need to be paid online through the MCA portal.

6. Certificate of Incorporation:

   Once the forms are filed and the fees are paid, the ROC will issue a Certificate of Incorporation. This certificate serves as proof of the company’s registration.

7. Apply for PAN and TAN:

   The last step is to apply for Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for the company. These are necessary for tax purposes.

Overall, the process of public limited company registration in Kolkata can take several weeks to complete, depending on the complexity of the company structure, the availability of documents, and the efficiency of the registration process. It is recommended to seek the help of a professional service provider, like Legal Corner, to ensure a smooth and hassle-free registration process.

Documents Required for Public Limited Company Registration

• Identity Proof such as Aadhar card, PAN card, Driving License, Voter Id of all the designated directors and shareholders.
• Address Proof of all the proposed directors and shareholder of the company.
• PAN card details of all the directors and shareholders
• Utility bill such as telephone, gas, water or electricity bill of the registered office as a residential proof of the business place. It should not be older than 2 months.
• An NOC or No Objection Certificate from the landlord of the business place.
• DSC or Digital Signature Certificate of the designated directors
• Memorandum of Association (MOA) and Article of Association (AOA)