A public limited company is defined as an establishment or an institution
that is able to offer its share to the public.ï¿½Public Limited Company
Registrationï¿½is an important step that is undertaken by individuals before
undertaking business activities. In this article, we will talk about some
crucial aspects of a public company and how it must be set up.
What are the features of Public Limited Company?
Before selecting any company, understanding its elements is crucial.
Similarly, before undertaking public limited company registration,
individuals understand important aspects of a company which is known as
characteristics. Some features of this company are as follows:
Minimum number of members
Before applying for Public Limited Company Registration, a public limited
company must ensure that it contains a minimum of 7 individuals as members
of the company.
Maximum number of members
A public limited company can have unlimited number of members in comparison
to a private limited company that can have only 50 members in a company.
Number of directors
The minimum number of directors allowed in a public limited company is
three. There can be more than three directors but the minimum number has to
Transferability of shares
There is no absolutely no restriction with regards to transferring shares.
Shares can be easily transferred in a public limited company.
What are the advantages of a Public Limited Company Registration?
A public limited company has several benefits in comparison to other types
of company, which will be discussed in this article.
Process for Public Limited Company Registration
- Limited Liability
- Transfer of shares
- Listing in the stock exchange
- Perpetual succession
- Improved succession
- Fewer risks
The registration process for a public limited company has some crucial steps
that are followed by individuals in a manner which is predefined by the
Obtain Digital Signature Certificate
The first step in the registration process is to obtain Digital Signature
Certificate (DSC). DSC is a statutory requirement for e-forms that is
digitally signed by the authorized authority. Acquiring DSC is crucial and
must be acquired by the directors/ signing authority of the company. This is
will make all the other steps in the process easier.
Filing SPICe+ form
Next, the applicant files a form called SPICe + form. This form is filled
for filing incorporation application with documents. This form is filled to
obtain a certificate of incorporation, name reservation and Directors
Identification Number (DIN) for up to 3 directors. For name reservation, the
applicant must then select a name, check for name availability from the
MCAï¿½s website and ensure that the name is unique.
The applicant must also fill in crucial documents such as MOA and AOA. These
two documents contain all details such as vision, mission, objectives,
business activities etc.
Obtain certificate of incorporation
Once all the documents and application forms are submitted by the applicant,
verified and approved by the authority, the certificate of incorporation
certificate is obtained and is received by the applicant.
Obtain PAN and TAN
One of the crucial steps after receiving the incorporation certificate is
applying for PAN and TAN. The applicant must apply for both PAN and TAN, and
obtain it before undertaking business activities.
Creation of a bank account
The last step in the public limited company registration process is the
creation of a bank account in the name of the company.
What documents are required for Public Limited Company Registration?
Documentation is an important step and it must be prepared and submitted to
the authority concerned before the stipulated time period.
- Identity proof of the applicant such as Aadhaar card, Voter ID,
Driving license of all the directors and shareholders.
- Address proof of all the directors and shareholders of the company.
- Utility bills such as telephone, water, gas or electricity bill of
the registered office.
- A non-objection certificate (NOC) from the landlord of the place
- Directors identification number (DIN) of all the directors
- Digital signature certificate (DSC) of all the directors
- Memorandum of Association (MOA)
- Articles of Association (AOA)
What are the minimum requirements for Public Limited Company
Registration? Some requirements that are mandatory before starting a public limited
company are as follows:
The maximum number of individuals as members of the company is unlimited.
- A minimum number of seven individuals as directors must be present
in a public company
- All the directors must acquire Directors Identification Number (DIN)
- All the members are required to obtain DSC, PAN and TAN before
undertaking business activities.
- All documents mentioned must be prepared and submitted to the
What are the rights of an Employee in Public Limited Company?
An agreement has to be prepared which contains all the details with regards
to rules and regulations about the company. This document must be signed by
both the employer and employee before starting work.
Leaves are mandatory and every employee is entitled into leaves and
holidays. Certain holidays that an employee receives are ï¿½ casual leave,
paid leave, sick leave and other leaves.
Receiving Salary on time
The salaries must be distributed to employees as per the date discussed and
the day of arrival of them.
Gratuity is the retirement benefit that is provided to the employees once
they leave the company.ï¿½It is given to the employees who complete at least 5
years of working in the same company.
Provident fund is a fixed amount that is deducted from the employeeï¿½s salary
until the time of his employment. After his resignation, this amount of paid
When an employer wants to end the employment contract with an employee, he
serves a notice of a certain period.
Protection against sexual harassment
The employers must ensure the safety and protection all the employees. Rules
and regulations are set up in accordance to the issues along with the
It is crucial for every employee to know and be aware of his rights as an
employee. He must understand the minute details with regards to his rights
and use them when required. A registered company is one of the crucial
aspects that an individual must consider before applying for a position. For
any company to run smoothly; registration is crucial and public limited
company registration is essential for a public company.
Written By: Mahiya Ahmed
who is a content writer. She is working for
SwaritAdvisors. SwaritAdvisors is a legal & financial services offering &
provider with free advisory such asï¿½NBFC Registration,ï¿½Nidhi Company
Registration,ï¿½FSSAI Registration,ï¿½PVT LTD Company Registration, etc.
Email: [email protected]