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Public companies enjoy all the rights of limited liability companies and are an ideal choice for SMEs looking to increase public equity. Below, you will find a comprehensive description of the features, procedures, and document requirements for registering a public company.

 A public limited company under the Companies Act 2013 is a limited liability company and is publicly traded. The shares can be purchased by anyone through an initial public offering (IPO) or through trading on the stock exchange.

Public companies are strictly regulated and must disclose their actual financial position to shareholders.

One of the benefits that listed companies enjoy is that they can raise money by selling their stock to the public. Prior to release, it is difficult to raise large sums of money other than borrowing to fund operations and new product offerings. Private companies raise funds only by reinvesting their profits, taking out loans, or receiving investment from a small number of wealthy individuals who may not be able to provide sufficient capital to meet their financial needs. I can do it. 

Public companies can raise funds in the primary and secondary markets by allowing investors to buy shares in the company. The ability to raise large amounts of capital on public exchanges allows public companies to engage in capital-intensive activities. In return, shareholders will benefit from higher stock prices and dividend payments. 

The Public Company has the feature of perpetual succession. Because the Public Limited Company is an independent legal entity, it is not affected by the death or other termination of one of its members and will survive any change in membership. It means that the company will survive the death, retirement, madness and bankruptcy of one or more employees / shareholders / directors.

Stocks are generally sold to the public, thus spreading out unsystematic market risk.

 Public companies can attract more investors than Private limited companies. Due to various characteristics, including transparency, banks and other financial institutions are willing to provide financial support to public companies. Public companies are more likely to get favorable interest rates and loan repayment contracts.

1. At least Seven (7) members, either individuals or body corporates.
2. At least Three(3) Directors (individuals only) and one of them must live in India.
3. Every director and subscribers of members shall have a Digital Signature Certificate (DSC).
4. Public Company must have either “Public Limited" as the last word in its name.

The first step is to obtain the Digital Signature Certificate of the proposed Director(s) and subscribers of the Public Limited. The reason for this is that all the forms need to be submitted online and require the directors and subscribers of Memorandum of the Public Limited. Following information/documents are needed for application of DSC: 

i. Aadhaar Card

ii. PAN Card

iii. Photograph

iv. Email address

v. Mobile Number

The next step while incorporating public company is to decide on the name of the Company. The name of the Company will be in the form of “ABC Limited”.

The name can be approved in the Form SPICe+ 32 application. Only one preferred name along with the significance of keeping that name can be given in the Form SPICe+ 32 application. If the name gets rejected, another name can be submitted by applying another Form SPICe+ 32 application.  

 Once the name is approved by the MCA we move on to the next step.

We have to prepare the following documents which are required to be submitted to the ROC:

The Memorandum of Association (MOA) which are the objects to be followed by the Company or stating the business for which the company is going to be incorporated.

The Articles of the Association (AoA) lays down the by-laws on which the company will operate.

Proof of the proposed company's registered office as well as proof of ownership and NOC from the owner.

Declaration and Consent of the proposed Directors of Form INC -9 and DIR – 2 respectively.

A declaration by the professional certifying that all compliances have been made. 

All documents will be attached to the SPICe Form, SPICe-MOA and SPICe-AOA along with the DSC of the Director and the professional will be uploaded to the MCA site for approval. The Pan Number and TAN is generated automatically at the time of incorporation of the Company. There is no need to file separate applications for obtaining PAN Number and TAN.  

On verification, the Registrar of Companies (ROC) will issue a Certificate of Incorporation and simultaneously PAN, TAN, ESI and EPF registration will be done for the Company. 

1. Identity Proof such as Aadhaar Card, Driving License, Voter ID of all the directors and shareholders. 
2. Address Proof of all the proposed directors and shareholder of the company such as Electricity Bill/ Telephone Bill / Bank Account Statement.
3. PAN card details of all the directors and shareholders
4. Utility bill such as telephone, gas, water or electricity bill and rent agreement of the registered office as a residential proof of the business place. It should not be older than 2 months. 
5. An NOC or No Objection Certificate from the landlord of the business place. 
6. Digital Signature Certificate of the directors.
7. Email ID and Mobile no. of directors and shareholders of the company.
8. Passport size photograph of the directors and shareholders.

Note: In case of NRI or Foreign National, documents of Subscribers of Memorandum and Directors must be notarized or apostilled.