A public limited company is defined as an establishment or an institution that is able to offer its share to the public. Public Limited Company Registration is an important step that is undertaken by individuals before undertaking business activities. In this article, we will talk about some crucial aspects of a public company and how it must be set up.

What are the features of Public Limited Company?

Before selecting any company, understanding its elements is crucial. Similarly, before undertaking public limited company registration, individuals understand important aspects of a company which is known as characteristics. Some features of this company are as follows:

Minimum number of members
Before applying for Public Limited Company Registration, a public limited company must ensure that it contains a minimum of 7 individuals as members of the company.

Maximum number of members
A public limited company can have unlimited number of members in comparison to a private limited company that can have only 50 members in a company.

Number of directors
The minimum number of directors allowed in a public limited company is three. There can be more than three directors but the minimum number has to be maintained.

Transferability of shares
There is no absolutely no restriction with regards to transferring shares. Shares can be easily transferred in a public limited company.

What are the advantages of a Public Limited Company Registration?

A public limited company has several benefits in comparison to other types of company, which will be discussed in this article.

• Limited Liability
• Transfer of shares
• Listing in the stock exchange
• Perpetual succession
• Improved succession
• Fewer risks

Process for Public Limited Company Registration
The registration process for a public limited company has some crucial steps that are followed by individuals in a manner which is predefined by the Government.

Obtain Digital Signature Certificate
The first step in the registration process is to obtain Digital Signature Certificate (DSC). DSC is a statutory requirement for e-forms that is digitally signed by the authorized authority. Acquiring DSC is crucial and must be acquired by the directors/ signing authority of the company. This is will make all the other steps in the process easier.

Filing SPICe+ form
Next, the applicant files a form called SPICe + form. This form is filled for filing incorporation application with documents. This form is filled to obtain a certificate of incorporation, name reservation and Directors Identification Number (DIN) for up to 3 directors. For name reservation, the applicant must then select a name, check for name availability from the MCA’s website and ensure that the name is unique.
 
The applicant must also fill in crucial documents such as MOA and AOA. These two documents contain all details such as vision, mission, objectives, business activities etc.

Obtain certificate of incorporation
Once all the documents and application forms are submitted by the applicant, verified and approved by the authority, the certificate of incorporation certificate is obtained and is received by the applicant.

Obtain PAN and TAN
One of the crucial steps after receiving the incorporation certificate is applying for PAN and TAN. The applicant must apply for both PAN and TAN, and obtain it before undertaking business activities.

Creation of a bank account
The last step in the public limited company registration process is the creation of a bank account in the name of the company.

What documents are required for Public Limited Company Registration?

Documentation is an important step and it must be prepared and submitted to the authority concerned before the stipulated time period.

• Identity proof of the applicant such as Aadhaar card, Voter ID, Driving license of all the directors and shareholders.
• Address proof of all the directors and shareholders of the company.
• Utility bills such as telephone, water, gas or electricity bill of the registered office.
• A non-objection certificate (NOC) from the landlord of the place
• Directors identification number (DIN) of all the directors
• Digital signature certificate (DSC) of all the directors
• Memorandum of Association (MOA)
• Articles of Association (AOA)

What are the minimum requirements for Public Limited Company Registration?

Some requirements that are mandatory before starting a public limited company are as follows:

• A minimum number of seven individuals as directors must be present in a public company

The maximum number of individuals as members of the company is unlimited.

• All the directors must acquire Directors Identification Number (DIN)
• All the members are required to obtain DSC, PAN and TAN before undertaking business activities.
• All documents mentioned must be prepared and submitted to the authority.
   

What are the rights of an Employee in Public Limited Company?

Employment Agreement
An agreement has to be prepared which contains all the details with regards to rules and regulations about the company. This document must be signed by both the employer and employee before starting work.

Leave
Leaves are mandatory and every employee is entitled into leaves and holidays. Certain holidays that an employee receives are – casual leave, paid leave, sick leave and other leaves.

Receiving Salary on time
The salaries must be distributed to employees as per the date discussed and the day of arrival of them.

Gratuity
Gratuity is the retirement benefit that is provided to the employees once they leave the company. It is given to the employees who complete at least 5 years of working in the same company.

Provident Fund
Provident fund is a fixed amount that is deducted from the employee’s salary until the time of his employment. After his resignation, this amount of paid to him.

Notice Period
When an employer wants to end the employment contract with an employee, he serves a notice of a certain period.

Protection against sexual harassment
The employers must ensure the safety and protection all the employees. Rules and regulations are set up in accordance to the issues along with the solutions.

Conclusion
It is crucial for every employee to know and be aware of his rights as an employee. He must understand the minute details with regards to his rights and use them when required. A registered company is one of the crucial aspects that an individual must consider before applying for a position. For any company to run smoothly; registration is crucial and public limited company registration is essential for a public company.

Written By: Mahiya Ahmed who is a content writer. She is working for SwaritAdvisors. SwaritAdvisors is a legal & financial services offering & provider with free advisory such as NBFC Registration, Nidhi Company Registration, FSSAI Registration, PVT LTD Company Registration, etc.
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