Company Registration

Public Limited Company

The Company defined under section 3(1)(iv) of the Companies Act, 1956 is a public company which:
  1. Is not a private company;
  2. Has a minimum paid-up capital of Rs. 5 lakhs or such higher capital as may be prescribed;
  3. Is a private company but subsidiary of a public company.
Private Companies deemed to be Public Companies

Certain private companies are deemed to be public companies by virtue of section 43 A, viz.-

  1. When 25% or more of its paid-up share capital is held by one or more body corporate;
  2. When its average annual turnover (during the last 3 years) exceeds Rs. 25 crores;
  3. When it holds 25% or more of the paid-up share capital of Public Company; or
  4. When it accepts or renews deposits from the public after making an invitation by an advertisement.

However, as per the Companies (Amendment) Act, 2000 effective from 13th December 2000 such deemed public limited companies are required to intimate to the Registrar to revert back to their original status as a private limited company.

For Setup a Public Limited Company (Top)
Persons desirous of forming a company must adhere to the step by step procedure as discussed below:-
  1. Selection of type of the company.
  2. Selection of name for the proposed company.
  3. Apply for Directors Identification Number and Digital Signatures.
  4. Drafting of Memorandum and Articles of Association.
  5. Stamping, digitally signing and e-filing of various documents with the Registrar.
  6. Payment of Fees.
  7. Obtaining Certificate of Incorporation.
  8. Preparation and filing of Prospectus/Statement in lieu of Prospectus and e-Form 19/20 (in case of public companies) for obtaining the certificate of commencement of business.
  9. Obtaining Certificate of Commencement of business (in case of public limited companies).


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