In India, public limited companies (PLCs) are business formations allowing the general public to buy shares, therefore enabling stock exchange-mediated capital production. Under the Companies Act of 2013, PLCs have a minimum of seven shareholders but no restriction on the maximum. Knowing the registration fees is essential as the nominal share capital determines the total financial planning for businesses hoping to become a PLC and access larger investment possibilities for expansion.
Public Limited Company Registration Fees Breakdown
Public limited companies registered in India pay different registration costs depending on their nominal share capital. Here is a comprehensive breakdown:
- Nominal Share Capital of Rs. 1,00,000: The software price is Rs. 5,000.
- 1,00,000 to Rs. 5,00,000: The charge is Rs. 5, 000 plus Rs. Four hundred for every additional Rs. 10,000.
- 5,00,000 to Rs. 50,00,000: The software rate is Rs. 21,000 plus Rs—three hundred for every more Rs. 10,000.
- 50,00,000 to Rs. 1 Crore: The price is Rs. 2,06,000 plus Rs. 100 for every additional Rs. 10,000.
- Above Rs. 1 Crore: The utility price starts at Rs. 2,06,000 plus Rs. 75 for each greater than Rs. 10,000, with a maximum cap of Rs. 2.50 crores.
Prospective business owners should budget carefully as these fees represent the size of the company and the possible financing that may be obtained.
Who Can Start a Public Limited Company in India?
In India, a public limited company can be started by any person or group of people who are interested in forming a company and complying with the legal requirements.
The following are the requirements to start a public company in India:
- A Minimum Number of Members: A public company must have a minimum of seven members.
- Directors: A public company must have a minimum of three directors. At least one director must be a resident of India.
- Name Reservation: The proposed name of the company must be reserved with the Ministry of Corporate Affairs (MCA).
- DSC: The directors must obtain a digital signature certificate (DSC) from a licensed certifying agency.
- DIN: Each director must obtain a Director Identification Number (DIN) from the MCA.
- The MOA and AOA: Memorandum of Association (MOA) and Articles of Association (AOA)must be drafted and filed with the Registrar of Companies (ROC).
- Payment of Fees: The prescribed fees must be paid to the ROC.
- Certificate of Incorporation: Once all the formalities are completed, the ROC will issue a Certificate of Incorporation and the company will be deemed registered.
How to Register a Public Limited Company in India?
Public limited company registration in India requires 7 persons to start. No minimum capital requirement is there, one can start with even Rs.5,000. Here are following three important points:
Registering a public limited company requires a series of essential steps:
- Get a DSC and a DIN for the directors first. These are necessary for electronically submitting paperwork to the Ministry of Corporate Affairs (MCA).
- File for Name Approval: Your organization should next choose a distinctive name. To prevent rejection, this name should follow MCA’s suggested naming rules.
- Incorporating starts after the name is authorized. The SPICe form (INC 32) combines numerous applications into one and requires filing for incorporation, PAN, and TAN.
- If your business’s revenue is above the recommended level upon formation, acquiring GST registration becomes absolutely necessary. This guarantees tax regulation compliance.
Document Required to Start a Public Company
A public limited corporation must be registered using different documentation:
- For all directors, identify proof from a voter ID, passport, or Aadhar card.
- Address proof for the registered office from utility bills or leasing agreements.
- Comprising the company’s goals and policies, MOA and AOA are Memorandum of Association and Articles of Association.
- Declaration of Compliance: An announcement declaring that every Company Act criterion has been satisfied.
Avoiding delays in the registration procedure depends on all of the documentation being exact and full.
Post-Incorporation Compliance for Public Company
Once your public limited company is established, it must continuously comply to keep its legal position. This includes filing financial accounts, having annual general meetings (AGMs), and following several required duties. Apart from avoiding fines, regular compliance builds openness and trust among investors and owners.
Private Limited Company vs Public Limited Company
The main differences between a private limited (Pvt Ltd) company and a public limited (Public Ltd) company are listed below:
- Ownership: A Pvt Ltd company is privately owned and cannot have more than 200 shareholders, while a Public Ltd company can have an unlimited number of shareholders and the shares can be traded on the stock exchange.
- Share Transferability: The shares of a Pvt Ltd company cannot be freely transferred, and the company must approve any share transfers. In contrast, the shares of a Public Ltd company can be freely bought and sold on the stock exchange.
- Disclosure Requirements: A Pvt Ltd company has fewer disclosure requirements than a Public Ltd company. For example, Pvt Ltd companies are not required to disclose their financial statements publicly, whereas Public Ltd companies are required to file their financial statements with the Registrar of Companies and make them available to the public.
- Minimum Capital Requirement: A Pvt Ltd company can be incorporated with a minimum paid-up capital of Rs. 1 lakh, whereas a Public Ltd company, must have a minimum paid-up capital of Rs. 5 lakhs.
- Legal Compliances: A Public Ltd company has more legal compliances and regulations to follow than a Pvt Ltd company. For example, a Public Ltd company must hold an Annual General Meeting (AGM) and comply with various other requirements under the Companies Act.
Conclusion
Establishing a public limited company in India may be profitable, with plenty of business and growth possibilities. A smooth start, nevertheless, relies on knowing the filing costs and process involved. Given the difficulty of the filing process, it is suggested that you consult experts to handle it properly.
See professionals who can provide customized assistance to fit your company requirements for further direction on public limited company registration and compliance. Starting this path could provide interesting opportunities; with the correct information and tools, you can guide your company towards success.
