What Are The Legal Requirements For Starting A Public Limited Company In India

To start a public limited company in India, the following legal requirements must be met:

1. Minimum of seven shareholders and three directors. To start a public limited company in India, you need at least seven shareholders and three directors. The maximum number of shareholders is unlimited.
2. Obtain Director Identification Number (DIN) and Digital Signature Certificate (DSC). The first step is to obtain a DIN and DSC for all the proposed directors of the company. A person needs a DIN to act as a company director. A DSC is used to sign electronic documents.
3. Obtain Name Approval. The next step is to obtain name approval from the Registrar of Companies (ROC). This is by filing Form SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus). Also, with the proposed names of the company in the order of preference. The name should be unique and not similar to any existing company or trademark.

Memorandum Of Association

1. Drafting of Memorandum of Association (MOA) and Articles of Association (AOA): MOA and AOA are the legal documents. They define the scope of activities of the company and its rules and regulations, respectively. These documents need to be drafted and filed with the ROC.
2. File Incorporation Documents: Once you approve the name and draft the MOA and AOA, you must file the incorporation documents with the ROC. These documents include Form SPICe+, Form INC-9 (declaration by the first subscriber(s) and director(s)), Form DIR-2 (consent to act as a director), and Form URC-1 (declaration of compliance with registration formalities).
3. Obtain Certificate of Incorporation: After the ROC verifies and approves the incorporation documents, it issues a Certificate of Incorporation. This certificate is the proof of the company’s existence and contains the company’s Corporate Identification Number (CIN).

Finance

1. Obtain PAN, TAN, and Bank Account: After obtaining the Certificate of Incorporation, the company needs to obtain a Permanent Account Number (PAN), Tax Deduction and Collection Account Number (TAN), and open a bank account in the company’s name.
2. File for Commencement of Business: A public limited company cannot commence its business until it files a declaration of commencement of business with the ROC. You must file this declaration within 180 days from the date of incorporation.
3. Commencement of Business: A public limited company must obtain a Certificate of Commencement of Business before starting its operations.
4. Compliance: A public limited company must comply with the provisions of the Companies Act, 2013 and file various forms and returns with the ROC.

Conclusion

The process of starting a public limited company may vary depending on the specific requirements of each state or union territory in India. Consult a legal professional or a company registration service provider for detailed guidance on the process.