Registration of a Public Limited Company| Explained

29 Aug 2018  Read 1738 Views

A public limited company is an incorporated business and is said to be a separate legal entity from its owners like that of the Private Limited Company. Shareholders are termed to be its owners and they enjoy the benefit of the limited liability. The limited liability is a benefit to each of the shareholder of that company. According to Section 3(1) (IV) of Indian Companies Act 1956 that ‘’a public company is not a private company” also the articles do not restrict the transfers of shares of the company. There is no restriction on the maximum number of the companies. It invites general members and public to purchase the shares and debentures of the company. If one wants to register a public company there are many advantages or benefits related to the registration of a public Company which are -

  • When a public company gets registered the ease of issuing share to public becomes easier.
  • There is a liability which is seen in the worth of the shares
  • There is an easiness of business growth, when there is use of funds.

There are many more advantages that are met to the persons who register their public company. The capital which is raised from the public fund is said to be the safe source of capital and that is not needed to repay the debts incurred. By registering a public company it will be easier for the companies to expand its business growth while using the same funds towards the obligations and management of the business. Some basic guidelines and registrations are followed to register a public company in India.

Steps to register a public company in India

There are various prescribed rules and regulation which have been stated for the registration and incorporation of the company which have been described under the New Companies Act 2013. It becomes important for a public limited company to get it registered under this act and follow the procedure to register the company under various steps which are required in the formation of the public sector company.

  1. There should be minimum 7 shareholders and 3 directors need to form a Public Company in India.
  2. The share capital required for the registration should be 5 Lakhs of the company.
  3. That there should be a Digital Signature Certificate of any one of the Directors of the company so as to submit proof of the identification and with it there should be an address proof to require for the same.
  4. While registering a public Limited company, one of the directors of the company should submit the DIN i.e. Director Identification Number, it is an important document which is required for the purpose for submitting the director’s personal details and that should be submitted specifically to the particular DIN authority.
  5. For the registration of the name for that particular company at least 6 names should be given prior to the registration and a pre-name should also be inserted for that matter.
  6. There should be an application for the suggestion for the pre-name of the company.
  7. When the application is submitted for the registration of the company, the purpose of its incorporation should also be mentioned, and the purpose of the company should be clearly mentioned and how that particular company would fulfil its objective to complete or as to reach on that purpose.
  8. The application should be represented to the registrar of the company and that should also contain the important information including the documents like the Memorandum and Article of Association and it should also contain form which should be duly filled i.e.INC-7, INC-22 and DIR-12.
  9. Then after all the steps there should be the payment of the fees for the registration, one can always make changes in the specified amount of time in if it’s required in MOA/AOA and other documents related to legal areas in the corporation or formation of the company.


Other important information regarding the registration

  • DIN (Director Identification Number) –It is required when a director is applying for the registration of the company.
  • Digital Signatures of the Director.
  • There should be a check on the name availability and also there should be an approval by the registrar company for the same.


  1. Proof of Identity
  2. Proof of Residence
  3. Photograph of Director and the Shareholder
  4. PAN required (If the persons are Indian Nationals.

With regard to above mentioned requirement certain terms should be mentioned clearly and specifically;

  • DSC – (Digital signature of the Director)
  • ROC-(Registrar of Companies)
  • MOA-(Memorandum of Association)
  • AOA-(Article of Association)
  • Company Registration- Certificate of the Registration.


The registration of the Public company is an easy process in India However the restrictions which are set up on the private company are not applied to the public company, and therefore the shares of any of the public limited company can be freely transferred and there is certainly no restriction on the number of shareholders. It is mentioned in the Companies Act, 2013 that even a private company which is subsidiary of public company should come in the ambit of a public company.

To obtain Director Identification Number it should take maximum time of 3-5 days and that is an important document for the registration of the company. It normally takes 15-20 working days so that all the process can be completed on the working days. Sometime it may vary that the registration process can take some more days and that completely depends on Registrar of the companies as each state has its own Registrar. A public limited company is advantageous as well because there is an easy funding of the investors. A public limited company offers transferring the shares freely. Because of its various stages and process one can easily invest in these companies as transparency is highly available. The public limited company are easily recognizable by the investors for long term vision.

About the Author: Ratan Deep Singh | 7 Post(s)

Ratan is a Biotechnology graduate and a former print-media Journalist, who specialized in marketing to take up Brand Communication. He’s a grammar Nazi & big-time foodie who appreciates creativity and often tries his hand in creative poetic writing.

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