Overview of Public Limited Company Registration

Public limited companies enjoy all the rights of a corporate entity with limited liabilities and it is an ideal choice for the small and medium scale enterprises who wish to raise the equity capital from the general public.

Basic Clarification on Incorporation of Public Limited Company

Just like other companies, Public Limited Company is also registered as per the rules and regulations of the Companies Act, 2013. A public Company enjoys the benefits of limited liabilities for its members and has rights to sell its shares for raising the capital of the company. It can be incorporated with a minimum number of three directors and has more stringent rules and regulations as compared to a Pvt. Ltd. Company.

It must have a minimum number of seven members whereas there is no limit for the maximum number of members. It provides all the benefits of a private limited company along with more transparency and easy transferability of ownership and shareholding. Name, shares, formation, number of members, management and directors, etc differentiates any Public limited company from the private limited companies.

Benefits of Public Limited Company Registration

Here are the benefits provided to the company with Public Limited company registration

• Limited liabilities for the shareholders of the company

  Shareholders of the public company enjoy the benefits of limited liabilities under which their assets are safe and cannot be used to clear the debts and losses of the company. Despite of it, the shareholders are responsible for their own legal offenses. All the members, directors and shareholders enjoy this right and their assets cannot be seized by any bank, creditors or government bodies.

• Perpetual Succession

  A public limited company is considered as a corporate body that has perpetual succession. Means in case of death, retirement, insanity, and insolvency of one or more members/ shareholder/ directors, the company still continue its existence.

• Improved capital of the company

  In a public limited company, the general public is invited to buy the shares of the company. Hence, anyone can invest in a public company that improves the capital of the proposed company.

• Borrowing Capacity

  A public company can enjoy unlimited sources for borrowing funds. It can issue equity, debentures and can accept the deposits from the general public by selling its shares. Moreover, most of the financial institutions find public companies more prominent than other unregistered companies.

• Fewer risks

  Since public companies can sell their shares to the public, it lesser the scope of unsystematic risks of the market.

  Better opportunities for growth and expansion of the company:

• Fewer risks lead to better opportunities so that the company can grow and expand by investing in new projects from the funds raised by selling its shares in the market.

Documents Required for Public Limited Company Registration

An applicant has to collect all these documents to file along with the incorporation application:

• Identity Proof such as Aadhar card, PAN card, Driving License, Voter Id of all the designated directors and shareholders. 
• Address Proof of all the proposed directors and shareholder of the company.
• PAN card details of all the directors and shareholders
• Utility bill such as telephone, gas, water or electricity bill of the registered office as a residential proof of the business place. It should not be older than 2 months. 
• An NOC or No Objection Certificate from the landlord of the business place. 
• DSC or Digital Signature Certificate of the designated directors
• Memorandum of Association (MOA) and Article of Association (AOA)

Features of Public Limited Company Registration

Here are some important features of Public Limited Company:

• Number of Directors in the company

  As stated in the provisions of Companies Act, a public company must have a minimum number of 3 directors to incorporate a company whereas there is no restriction on the maximum number of directors.

• Name of the Company

  All the Public limited companies must add “Limited” word at the end of their name. it is denoted as an identity of a public company.

• Prospectus of the Company

  Prospectus of the company is mandatory for the public limited companies. It is issued by the proposed company for its general public. It is a note of comprehensive statements of works and affairs of the company. However private companies have no such compliances as they don’t have rights to invite the public for their shares.

• Paid-up Capital

  As per the requirements of the act, no minimum capital required for the registration.

What is the difference between the Public limited Company and Private Limited Company?

There are various points of differences between both these companies. Here are some chief differences between both:

Public Limited Company Registration Procedure

• Step 1: Apply for the Digital Signature Certificate

  First of all, you have to apply for the Digital Signature Certificate for all the proposed directors in the company. DSC is used to sign the e-forms and is an authentic and safe method to file all the documents on an electronic platform. It is a mandatory document.

  A director can easily obtain DSC from the nearest Certifying Authorities or CAs with self-attested coppices of their identity proof. It takes around 1 -3 working days to obtain a DSC.

• Step 2: Name Verification

  The third step involves name registration of the company. You can check the name availability through the MCA portal by following this step

  Visit the MCA Portal> select the MCA services> Click Check Company Name

  Note: The company name should not be taken or registered and should not be similar to a brand name.

• Step 3: Filing Form SPICe+

  Once the company’s name has been approved you can now file the SPICe+ form to avail the company incorporation certificate. Along with it, you have to file all the required documents such as MOA (Memorandum of Association) and AOA (Article of Association). These two documents contain the details of the mission, objectives, aims, visions, business activities, responsibilities of all the directors and shareholders and definition of the proposed company.

  All the documents and applications are further verified by the higher authorities and it takes around 7 to 9 working days.

• Step 4: Obtaining Certificate of Incorporation

  Once all the applications and document to have been received to the authorities and they have verified it, the company would receive the Certificate of Incorporation which will include CIN and date of incorporation.

Requirements for the Public Company Registration

According to the provisions of Companies Act, 2013 here are the requirements you need to fulfill to incorporate a Public company in India:

• The proposed company must have a minimum number of 7 shareholders
• The proposed company must have a minimum number of 3 directors
•  No minimum capital required
• At least one director should have a Digital Signature Certificate
• Memorandum of Association and Article of Association.
• After approval from Registrar of the Companies, the proposed public company has to apply for the “Certificate of Business Commencement.”

Types of AYUSH Licenses

The manufacturing Licenses that are issued by the Ministry of AYUSH are as follows:

Let Us Discuss the Types of AYUSH Licenses in Depth, Those Are as Follows: –

• AYUSH Manufacturing License

It is acquired in the situations when the candidate wishes of getting the license and has come out with a plan of manufacturing and marketing both of the products. In a situation like this, the producer needs to set up his manufacturing unit.

Every state has its own set of requirements for setting up such manufacturing units. One needs to agree to all the requirements expressed by the state authority of AYUSH.

Requirements under AYUSH Act to obtain AYUSH Manufacturing License:

• It is necessary for the manufacturing unit to be in an industrial area.
• The minimum size of the manufacturing land for producing one Drug only should be 1200sqft.
• In case you are planning to produce more than one Drug, then it will eventually add more categories because you will require more space.
• It is compulsory for the manufacturing unit to be certified by GMP.
• Make sure to have on board 2 Ayurvedic experts and two pharmacies.
• You have access to all the manufacturing and packaging machinery.
• The drug inspector will conduct regular inspections of your manufacturing unit.
• Unani Manufacturing License

Unani Medicine is regarded as the science and craft of healing. It is a respectable profession of healing the enduring of humanity. The Unani framework is popular amongst people because of its one-of-a-kind approach through which it prevents and cures diseases. It has received mass acknowledgement as one of the corresponding medical systems.

• Siddha Manufacturing License

The treatment is done to maintain a balance between the mind-body and spirit system. Siddha treatment gives equal importance to the body, mind, and spirit and endeavours to restore complete harmony to different psychological and physiological functions of the body. In the treatment of Ayurveda, yoga plays a crucial role along with meditation, diet, and lifestyle.

• AYUSH Loan License

In this sort of set-up, the manufacturing unit is not claimed by the candidate. The Third-party manufactures the product. Such Loan License is to apply with a GMP certified manufacturer, and from there on, it will be given to the applicant organization. Thereafter product approval is needed to be acquired from the authorities.

Documents required to obtain an AYUSH License

• Applicant’s details such as Name, Address, E-mail, Contact Number
• A copy of the Manufacturing License,
• Complete product list applied for issuance of COPP and their composition,
• Site Master file/ Manufacturing Plant Layout,
• Submit the manufacturing formula along with the manufacturing process,
• Method of analysis and finished product specification Report,
• Approved products list,
• Stability study analysis based on batch, along with the Date of manufacturing, Date of Expiry, stability study condition, the name of the Drug
• Process validation report for three batches,
• Technical staff list along with the information like experience, qualification, and approval status,
• List of equipment and instruments used or to be used,
• Water System Diagram,
• HVAC System Diagram,
• Export data for the last two years, wherever re-validation of COPP is applicable,
• A proof of safety and effectiveness as mentioned in Rule 158B of Drugs & Cosmetic Rules, 1945.
• Undertaking related to the absence of any non-herbal such as metals/ or minerals etc. in the products applied for WHO-COPPs (Applicable in case of herbal products)
• Undertaking related to compliance with the provisions of domestic regulations inter-alia Drug and Cosmetics Act, 1940 and Rules thereunder, Drugs & Magic Remedies (Objectionable Advertisements) Act, 1954 and rules thereunder, (Applicable in case of herbal products).