Basic Requirements for Registering a Public Limited Company in India

Introduction
Registering a Public Limited Company in India is a comprehensive legal process governed by the Companies Act, 2013. This type of company is ideal for businesses aiming to raise capital from the public and operate on a large scale. A Public Limited Company enjoys a distinct legal identity, offers limited liability to its shareholders, and is allowed to list its shares on stock exchanges. However, it must meet specific eligibility and procedural requirements before incorporation. This article outlines the basic requirements necessary to register a Public Limited Company in India.

Minimum Number of Shareholders
To form a Public Limited Company, a minimum of seven shareholders is mandatory. These shareholders can be individuals or entities, and at least one of them must be an Indian citizen. There is no upper limit to the number of shareholders in a Public Limited Company, allowing for broader public participation and shareholding.

Minimum Number of Directors
A Public Limited Company must have at least three directors to comply with the statutory requirement. Among these, at least one director must be a resident of India, meaning they must have lived in India for at least 182 days during the previous calendar year. The directors are responsible for managing the company’s affairs and ensuring regulatory compliance.

Digital Signature Certificate (DSC)
All proposed directors and shareholders who are filing documents online with the Ministry of Corporate Affairs (MCA) must possess a Digital Signature Certificate. A DSC ensures the authenticity and integrity of documents submitted during the incorporation process. It is issued by a certified authority and is essential for e-filing applications and forms.

Director Identification Number (DIN)
Every individual proposed to be appointed as a director in the Public Limited Company must obtain a Director Identification Number. DIN is a unique number allotted by the MCA to each director and is used for verifying their identity and tracking their involvement in multiple companies. DIN can be applied for through the SPICe+ incorporation form.

Registered Office Address
The company must declare a registered office address at the time of incorporation. This address must be located in India and will be used for receiving official correspondence from government authorities. Supporting documents such as a utility bill, rent agreement, or ownership deed, along with a no-objection certificate from the owner, are required to verify the office address.

Company Name Approval
Choosing and securing a unique name is a crucial step in the incorporation process. The proposed company name must comply with the naming guidelines prescribed by the MCA. It must not be identical or similar to the name of any existing company or trademark. Name approval is sought by filing the SPICe+ Part A form or using the RUN (Reserve Unique Name) service.

Memorandum and Articles of Association
The company’s objectives, operational scope, and governance structure are defined in the Memorandum of Association (MoA) and Articles of Association (AoA). These documents must be drafted carefully and submitted along with the incorporation application. The MoA outlines the purpose for which the company is formed, while the AoA contains the rules for managing internal affairs.

Filing of Incorporation Forms and Payment of Fees
The SPICe+ form is used to file all incorporation details with the MCA. This form includes Part A for name reservation and Part B for incorporation and statutory registrations. Along with this, necessary declarations, identity proofs, and consent forms are attached. Statutory fees and stamp duty based on the state and authorized capital must be paid online to complete the application.

Conclusion
Registering a Public Limited Company in India requires fulfilling several essential criteria and submitting a range of legal documents. From ensuring the required number of shareholders and directors to securing digital certifications and filing incorporation forms, each step must comply with the regulations under the Companies Act, 2013. By understanding and meeting these basic requirements, promoters can successfully establish a Public Limited Company and lay a strong foundation for growth, credibility, and public investment.

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