RGV Public Limited Registration

A Public Limited Company represents a unique entity in the corporate landscape, as its securities are publicly traded on a stock exchange, allowing anyone to buy or sell its shares. This distinction comes with rigorous regulations, mandating transparent financial disclosures to empower investors in assessing stock value.

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Requirements for Registration of Public Limited Companies

  1. Shareholders: A minimum of 7 shareholders is essential for registration, with no upper limit. This ensures diversified ownership.

  2. Directors: A Public Company requires a minimum of 3 directors, extendable up to 50. Importantly, there is no cap on the number of shareholders, allowing flexibility.

  3. Paid-Up Capital: The company must have a maximum paid-up capital of Rs.5 lakh, providing a financial framework for its operations.

  4. Digital Signature Certificate (DSC): Submission of self-attested identity and address proof along with the DSC of one director is mandatory, ensuring secure online documentation.

  5. Director Identification Number (DIN): Directors need a unique DIN, a crucial identification for official purposes, to initiate the registration process.

  6. Object Clause: Crafting an application detailing the main object clause defines the company's objectives post-incorporation, providing clarity in its mission.

  7. Application Submission: Submit the application, including Memorandum of Association (MOA), Articles of Association (AOA), Form DIR-12, Form INC-7, and Form INC-22, to the Registrar of Companies (ROC).

  8. Registration Fees: Payment of prescribed fees to the ROC is necessary for processing the application and legal approvals.

  9. Approval and Business Commencement: Upon ROC approval, the company can proceed to apply for the 'certificate of business commencement,' marking the initiation of official operations.

Advantages of Public Limited Registration

Registering as a Public Limited Company offers numerous advantages, contributing to the company's credibility, growth potential, and financial robustness. Here are key benefits:

Access to Capital
Public Limited Companies can raise capital by issuing shares to the general public through stock exchanges. This broadens the investor base, allowing for substantial funds to finance expansion, research, and other strategic initiatives.
Business Opportunities
Listing on a stock exchange enhances visibility and credibility. It attracts attention from institutional investors, mutual funds, and other traders, providing greater business opportunities, partnerships, and potential collaborations.
Risk Distribution
Widely dispersed ownership of shares among the public mitigates risk for individual investors and, by extension, the company. This diversified ownership structure stabilizes the company's financial standing, especially during economic uncertainties.
Limited Liability
Shareholders in a Public Limited Company enjoy limited liability. Their personal assets are protected, and they are only liable for the value of shares held, shielding them from the company's debts and financial obligations.
Enhanced Corporate Governance
Public companies are subject to stringent regulatory oversight, necessitating adherence to high corporate governance standards. This commitment to transparency and accountability can enhance investor trust and confidence.
Liquidity for Shareholders
Publicly traded shares can be bought or sold on the stock exchange, providing liquidity for shareholders. This liquidity makes it easier for investors to enter or exit their positions.

FAQs

Explore answers to common queries with
our concise FAQ section.

The necessary documents include Memorandum of Association (MOA), Articles of Association (AOA), Form DIR-12, Form INC-7, Form INC-22, and self-attested copies of identity and address proof of directors. Additionally, a Digital Signature Certificate (DSC) of one director is needed.

Yes, one of the primary features of a Public Limited Company is its ability to issue shares to the public through stock exchanges. This allows for widespread ownership and access to capital.

The registration process duration can vary, but it typically takes a few weeks. Factors such as document preparation, government processing, and approval time contribute to the overall timeline.