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Public Company Registration

Public Company is a company incorporated under the Companies act, 2013 having separate legal entity, perpetual succession and can sue and be sued by its own name.

Minimum Requirement for Public Company:

 A minimum number of three Directors who are adults.

 One of the Directors of a Public Company has to be an Indian Citizen and Indian Resident.

 The other director(s) can be a Foreign National.

 It is also required to have seven shareholders of a company.

 The shareholders can be natural persons or an artificial legal entity.

Advantages of Public Company Registration

Separate Legal Entity

A Public Company is a company having separate legal entity and it may own property on its own name and can sue and be sued through its own name.

Limited Liability of Members

The liability of each member or shareholders is limited to the contribution made by them.

Separation of Management and Ownership

A Public Company separates Management and Ownership and thus, managers and directors are responsible for the company’s success and are also answerable for the company’s loss.

Easy to raise funding

Public Company can raise funds through issue of shares on Private placement basis and through Public issue, and the organization itself provides a number of ways to raise funds in the form of private equity, ESOP, and more.

Perpetual Succession

Since a Company is a separate Legal entity, in the eyes of law the company keeps on existing even in the case of death, insolvency or bankruptcy of any of its members.

Easy transferability of ownership

Shares of public company are freely transferable without any restrictions

Documents required to register a Public Company

Documents from Directors and Shareholders

Identity Proof

 Permanent Account Number (PAN) Card

 Aadhaar Card / Passport / Driving License / Voter Identity Card

Address Proof

 Telephone Bill / Mobile Bill

 Electricity Bill / Water Bill

 Bank Statement /Bank Passbook with latest transaction

*(Any one of the Document not older than 2 months)

Passport size Photographs

Notes:

 All the Copies of documents must be Self-Attested by the applicant.

 Telephone Bill / Mobile Bill/Electricity Bill / Bank Account Statement must be in the name of applicant and should not be older than 2 months.

 In case of NRI or Foreign National, documents of director (s) must be apostilled.

Registered Office – Address

 No-Objection letter from the Owner of Address to use the address of the registered office of the Company.

 Address Proof – In the name of the Owner:
Electricity Bill, Telephone Bill (Fixed Line Only), Gas Bill or Water Bill (Not older than 2 months);- To be signed by the of the Owner of Premises.

 Rent Agreement (if rented)

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all Legal Compliance & Business Needs.

Steps for registration of a Public Company:

Preliminary Requirements

 Select a suitable package.

 Provide basic details & documents required for Incorporation.

 Make Payment through Secured Payment Gateway

Registration

 Application for DSC.

 Application for Name approval

 Drafting of documents (MOA, AOA, DIR-2,etc)

Registered on MCA*

 Issuance of COI, PAN, TAN by MCA.

*Company will be registered with 10-12 working days subject to the MCA processing and approval.

Process for registration of Public Company:

Day 1-3:

 Provide basic details & documents required for registration.

 Application for DSCs.

 Name approval application through Spice part A.

Day 4:

 Drafting of Documents

Day 5-8:

 Filing company registration application through Spice Part-B

Day 9-12:

 MCA processing time

 Issuance of PAN, TAN, COI

Comparison of different forms of organization

Particulars Sole Proprietorship Partnership Firm Private Company Public Company Limited Liability Partnership One Person Company
Act No specified Act Indian Partnership Act, 1932 Companies Act, 2013 Companies Act, 2013 Limited Liability Partnership Act, 2008 Companies Act, 2013
No. of Members Only one Minimum 2 to Maximum 50 Minimum 2 to Maximum 50 Minimum 7 to Unlimited Minimum 2 to Unlimited Only One
Registration NO Optional Mandatory Mandatory Mandatory Mandatory
Perpetual Succession NO No, if less than 2 partner Yes Yes Yes Yes
Management Control Sole owner Active Partners Board of Directors Board of Directors Designated Partners Sole member
Distribution of Profits Profit of owner Distributable as per deed As per subscribed capital proportion Distributable as dividend to Members Distributable as deed Profit of Sole owner
Liability Unlimited Unlimited Limited Limited Limited Limited
Minimum Capital Requirement Not specified Not specified No minimum capital is required 5 Lakhs Rs. 1/- No minimum capital is required
Taxation Slab Rates 30% 22% 22% 30% 22%
Compliances Less Compliance Moderate Moderate High Moderate Moderate
Formation Process Easy to Form Easy to Form Moderate Complex Moderate Moderate
Foreign Direct Investment Not allowed Not allowed Allowed Allowed Allowed Allowed