What is Public Company and its Registration?
What is a public company?
A public company is an organisation whose ownership is issued to the general public via Initial Public Offerings [IPO] or through free trade of shares of stock of exchange. By the virtue of section 2(71) a public company is a company which is not a private company.
Under Section 3(i) (ii) of Companies Act 2013, a public company:
Incorporation of Public Limited Company
Procedure of Incorporation
A company requires at least 7 shareholders and 3 directors for registering it as a public company. A shareholder need not be a directors or visa versa. Directors of the company are accountable for the day-to-day working. Shareholders are the one holding shares of the company and are responsible for appointing directors.
DIN is allotted by the Ministry of Corporate Affairs to all the directors. It can obtained by filling an online application and PAN is compulsory while applying for DIN. The documents submitted to the ROC needs to be signed by all the directors using the authentic Digital Signature provided to all the promoters.
A proper address of the registered office of the company is important. The ROC will send the correspondence relating to the registered office and the command will depend upon the location of the company. There is no fixed authorised capital, it can be of any amount.
An application needs to filed with the ROC for the approval of the name of the company. It is advisable to submit the application with several names in the order of preference. The RUN Form needs to be filled to check the availability of the proposed name.
Once the company name is approved, the draft of constitutional document of the company i.e. Memorandum of Association and Article of Association is filed with the ROC in a prescribed format. The electronic document eMOA (INC-33) and eAOA (INC-34) are to be prepared and submitted to the ROC for registration of the company.
After the verification of eMOA and eAOA and other details, the ROC issues the CERTIFICATE OF INCORPORATION (COI) along with the Company Identification Number (CIN). The COI will be issued in digital form without any physical certificate.
A public company to start its operation requires its directors to file declaration. They are needed to pay subscription money within 180 days from the date of incorporation.