Public Limited Company Registration Process

Are you interested in starting a public limited company in India? Do you want to know about the registration process and the important documents required? Starting a public limited company can be a great way to establish a business with multiple shareholders and the ability to trade shares publicly. However, the registration process can be quite complicated, and it’s essential to have a clear understanding of the steps involved.

In this article, we will guide you through the public limited company registration process in India, from the required documents to the time and cost involved. Whether you’re a budding entrepreneur or an established business looking to expand, read on to discover everything you need to know about starting a public limited company in India.

Important Documents Required to Register Public Limited Company:

Before you start the process of registering a public limited company, you need to make sure you have all the necessary documents. Here are the important documents required:

• Director Identification Number (DIN) and Digital Signature Certificate (DSC) for all the directors of the company.
• Memorandum of Association (MOA) and Articles of Association (AOA) of the company.
• Proof of office address, such as a utility bill or rent agreement and NOC from the owner.
• Proof of identity and address of all the directors and shareholders, such as Aadhaar card, PAN card, passport or bank statement (not older than 2 months).

Average Cost to Register a Public Limited Company in India

The cost of registering a public limited company in India can be divided into two parts: government fees and professional fees. The government fees are the fees paid to the government for processing your registration application, while the professional fees are the fees paid to the service providers who help you with the registration process.

The government fees for registering a public limited company in India can range from Rs. 5,000 to Rs. 10,000, depending on the authorized capital of the company. The fees are higher for companies with a higher authorized capital.

The professional fees can include legal fees, consultancy fees, and other charges. The professional fees can range from Rs. 20,000 to Rs. 50,000, depending on the complexity of the registration process and the services you require.

How Long Does It Take to Register the Public Limited Company?

The registration process for a public limited company in India can take anywhere from 15 to 30 days, depending on various factors. The registration process involves several steps, and the time taken for each step can vary. In this section, we will provide you with an overview of the steps involved in the registration process and the time taken for each step.

Step 1: Obtaining Digital Signature Certificate (DSC) and Director Identification Number (DIN)

The first step in the registration process is to obtain a Digital Signature Certificate (DSC) and Director Identification Number (DIN) for the proposed directors of the company. This step can take around 1-2 days, depending on the availability of documents and information required.

Step 2: Name Approval

The next step is to get the proposed name of the company approved by the Registrar of Companies (ROC). This step can take around 3-5 days, depending on the availability of the name and the workload of the ROC.

Step 3: Drafting of Memorandum and Articles of Association

The Memorandum and Articles of Association (MOA and AOA) are the legal documents that outline the objectives and rules of the company. This step can take around 1-2 days, depending on the complexity of the MOA and AOA.

Step 4: Filing of Registration Forms and Payment of Fees

The next step is to file the registration forms with the ROC and pay the required fees. This step can take around 2-3 days.

Step 5: Verification and Approval

After the registration forms are filed, the ROC will verify the documents and information provided. This step can take around 7-10 days, depending on the workload of the ROC.

Step 6: Certificate of Incorporation

Once the verification is complete, the ROC will issue the Certificate of Incorporation (COI), which is the legal document that confirms the formation of the company. This step can take around 1-2 days.

Paid-Up Capital Required to Register Public Pvt Ltd Company.

To register a public limited company in India, there was a minimum requirement for the paid-up capital. The paid-up capital is the amount of money that a company has received from its shareholders in exchange for the shares issued to them. 

The minimum paid-up capital requirement for registering a Public Limited Company used to be Rs. 5 lakhs. However, the Indian government has removed the minimum paid-up capital requirement for both Public Limited Companies and Private Limited Companies. 

Therefore, now you can register your public limited company with any amount of paid up capital.

It is also important to note that the paid-up capital is not the same as the authorized capital. The authorized capital is the maximum amount of capital that a company is authorized to issue to its shareholders. The authorized capital can be higher than the paid-up capital.

FAQs: Public Limited Company Registration Process

Can a foreign national register a public limited company in India?

Yes, a foreign national can register a public limited company in India, subject to certain rules and regulations.

What is the difference between a public limited company and a private limited company?

A public limited company is a type of company in which the ownership is divided among multiple shareholders, and the shares can be traded publicly. On the other hand, a private limited company is a type of company in which the ownership is limited to a few shareholders, and the shares cannot be traded publicly.

Do I need to have a physical office address to register a public limited company?

Yes, you need to have a physical office address to register a public limited company. You can use a commercial space or a residential space as your office address.

What is the role of the Registrar of Companies (ROC) in public limited company registration?

The Registrar of Companies (ROC) is responsible for processing the public limited company registration application and issuing the Certificate of Incorporation. The ROC also maintains the records of all the companies registered in India.

Can I register a public limited company online?

Yes, you can register a public limited company online through the Ministry of Corporate Affairs (MCA) portal.

Conclusion

Registering a public limited company in India can be a complex process, but with the right guidance and resources, it can be a smooth and hassle-free experience. In this article, we have provided you with a step-by-step guide to the public limited company registration process, along with the necessary documents, service providers, cost, time, and paid-up capital required.

We hope this article has been helpful in providing you with the information you need to start your own public limited company in India. In case you need any further assistance, please feel free to contact our experts at Instafiling.

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