Neethi V. Kannanth
Quick Summary
Meaning of Public Company As per Section 2(71) of the Companies Act, 2013- Public company means a company which (a) is not a private company and; (b) has a minimum paid-up share capital as may be prescribed Provided that a company which is a subsidiary of a company, not being a private com
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FAQ :
A public company is defined as a company that is not a private company and has a minimum paid-up share capital as prescribed. A subsidiary of a public company is also considered a public company.
A minimum of 7 shareholders and 3 directors are necessary. The company name must end with 'Limited', and it needs to be approved by the ROC. Digital Signature Certificates (DSC) for all directors and subscribers are also required.
Shareholders can be individuals, companies, or LLPs. However, only individuals can serve as directors. It's not mandatory for directors to be shareholders, nor for shareholders to be directors.
The company name must be approved by the Registrar of Companies (ROC) before the registration process begins. This can be done through the RUN web form or directly via the SPICE+ form.
The SPICE+ form is used for company incorporation and can also be used to apply for name availability. It is also the method for proposed directors without a DIN to apply for one.
After receiving the COI, the business must apply for a certificate of commencement within 180 days by submitting Form INC-20A, confirming that all subscribers have paid their subscription money.
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