Indian Corporate Law & Corporate Governance Consultants
Formation of Public Limited Company in India
Section 3(1)(iv) of the Companies Act, 1956 in India defines public company as:
- A Company which is not a private company
- Has a minimum paid-up capital of Rs. 5 lakhs or such higher capital as may be prescribed
- Is a private company but subsidiary of a public company
- In addition Certain Private Company will be deemed as Public Company provided they comply the condition of Sec 43 A of the Company Act
Detailed Summary of the procedural aspect of forming a Public Limited Company:
- Selection of type of the company.
- Selection of name for the proposed company.
- Apply for Directors Identification Number and Digital Signatures.
- Drafting of Memorandum and Articles of Association.
- Stamping, digitally signing and e-filing of various documents with the Registrar.
- Obtaining Certificate of Incorporation.
- 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.
- Obtaining Certificate of Commencement of business (in case of public limited companies).