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 company, shall be deemed to be a public company for the purposes of this Act even where such subsidiary company continues to be a private company in its articles.
Requirements for Incorporating Public Company
a. Minimum 7 shareholders and 3 directors are necessary.
b. For a Public Limited Company, the name must end with the word "Limited".
c. Before the procedure of registration, the name of the company should be approved by ROC.
d. DSC of all Directors and Subscriber are necessary.
e. The rules and regulations are most stringent as compared to the Private limited company.
Registration Process of Public Company
Public Company registration is a complex procedure as it requires proper documentation. The working of the Public Company is subject to more strict compliances of the provision of the Companies Act 2013.
a. Recognizing 7 shareholders and 3 directors
For Public Limited Company Registration, a minimum of 7 shareholders and 3 directors are required. Shareholders can be individuals, companies, or LLPs, but only individuals can become directors of the company. It is not necessary that the director shall be the shareholder of the company and shareholders need not necessarily be the directors of the company.
b. Apply for Digital Signature Certificate and Director Identification number.
For company registration, (Also in the case of Public Company Registration) an applicant can apply for DIN through SPICE+ Form only. The requisite details of proposed Directors not having DIN must be filled into SPICE+ Forms.
However, in the case the company is already in existence, DIR-3 can be filled for the appointment of the director not having DIN. For the same, an applicant who intends to be appointed as director of the company already in existence shall make an application electronically in form DIR-3 to the Central Government[1] for allotment of DIN along with such fees as provided under the Companies (Registration Offices and Fees) Rules, 2014.
c. Apply for name availability either through RUN web form or through SPICE+ form Directly
d. Spice Form - Company Incorporation Form
Arrangement of requisite documents required for registering a public company, I.e. Details of the Subscriber and Directors (ID and Address Proof), Registered Office address documents.
Once the documents are prepared, they need to be submitted to the ROC for verification and after verification, the ROC registers the company and issue the incorporation certificate along with the CIN of the Company.
The business cannot be started immediately after receiving the COI. The business has to apply for a certificate of commencement within 180 days of the COI stating that all the subscribers have paid the subscription money through Form INC-20A.
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