Public limited companies play a vital role in promoting economic growth and attracting investments in India. This legal entity allows businesses to raise funds from the public while offering numerous benefits such as limited liability, enhanced credibility, and ease of share transfer.
In this blog, Wish Legals provides a complete step-by-step guide on how to register a public limited company registration in India.
What is a Public Limited Company?
A public limited company is registered under the Companies Act, 2013 and its shares can be offered to the public. It has a separate legal existence and provides shareholders the benefit of limiting their liability to the unpaid amount on their shares.
Key Features of a Public Limited Company
- Minimum Seven Members: At least seven shareholders are required.
- Minimum Paid-up Capital: Subject to applicable rules and regulations.
- Stock Exchange Listing: Public companies can list their shares on the stock exchange to raise capital.
These features, coupled with the benefits of credibility and access to funds, make public limited companies a popular choice among entrepreneurs and investors.
Advantages of a Public Limited Company
- Access to Capital: Ability to raise funds through an IPO.
- Limited Liability: Shareholders’ liability is restricted to their shareholding.
- High Credibility: Stronger investor, creditor, and market confidence.
- Transferability of Shares: Shares can be easily transferred, enhancing liquidity.
- Investor Attraction: Public limited companies attract greater investments, fueling growth.
A lawyer for a public limited company ensures that incorporation and compliance processes are smooth and error-free.
Steps to Register a Public Limited Company in India
1. Legal Conditions
Before incorporation, the following requirements must be met:
- Minimum of 7 shareholders and 3 directors.
- A unique company name as per the Companies Act guidelines.
- A registered office address in India.
Consulting Wish Legals at this stage ensures compliance and prevents delays.
2. Digital Signatures (DSC)
All directors and authorized signatories must obtain a Digital Signature Certificate (DSC), as incorporation documents are filed electronically.
3. Director Identification Number (DIN)
Every director must obtain a DIN, which can be applied through the SPICe+ form on the MCA portal.
4. Name Reservation
A unique name must be reserved through the RUN (Reserve Unique Name) service with the ROC.
- The name should not resemble existing company names.
- It must comply with MCA naming guidelines.
Wish Legals assists in filing compliant applications to avoid rejection.
5. Drafting MOA & AOA
- Memorandum of Association (MOA): Defines the company’s objectives.
- Articles of Association (AOA): Outlines internal rules and regulations.
Professional drafting by Wish Legals ensures accuracy and legal compliance.
6. Filing SPICe+ Form
The SPICe+ form (Simplified Proforma for Incorporating Company Electronically Plus) is used to apply for:
- Certificate of Incorporation.
- PAN & TAN of the company.
- GST Registration (optional).
7. Payment of Fees & Stamp Duty
Fees vary based on authorized capital and the state of registration. After payment, documents are processed by the ROC.
8. Certificate of Incorporation (COI)
Once approved, the ROC issues the Certificate of Incorporation (COI) along with a Corporate Identification Number (CIN).
Post-Incorporation Compliance
After registration, a public limited company must follow statutory requirements such as:
- Appointing an auditor within 30 days.
- Holding the first Board Meeting within 30 days.
- Filing annual returns and financial statements with the ROC.
- Complying with SEBI regulations if listed on the stock exchange.
Role of a Public Limited Company Lawyer
Registering and running a public limited company involves complex legal formalities. A lawyer for a public limited company helps with:
- Drafting incorporation documents.
- Ensuring compliance with the Companies Act, 2013.
- Resolving disputes among shareholders or directors.
- Guiding IPO and stock exchange listing processes.
For businesses in major cities like Delhi, a public limited company lawyer provides specialized support for smooth operations.
Challenges in Public Limited Company Registration
- Drafting MOA & AOA accurately.
- Ensuring compliance with MCA & SEBI rules.
- High costs of incorporation due to legal and professional charges.
Partnering with Wish Legals helps overcome these challenges with expert legal assistance.
Conclusion
Public limited company registration in India, though procedural and compliance-heavy, offers unmatched benefits—greater access to capital, limited liability, and enhanced credibility.
With professional guidance from Wish Legals, entrepreneurs can navigate legal complexities with ease and lay a strong foundation for business growth.
Public limited companies remain at the heart of India’s corporate structure, providing massive investment opportunities and fueling economic development.
For the original and authoritative version of this article, visit: https://www.linkedin.com/pulse/public-limited-company-registration-india-ib4wc
