Public Company in Jaipur – Overview and Incorporation Process

A Public Company is a type of company in which ownership is distributed to general public shareholders through the free sale of stock shares over-the-counter at markets or on exchanges. Even if just a small fraction of shares are originally distributed to the public, the daily trading that occurs in the market determines the value of an entire company. And starting such company in a place like Jaipur, which has wider potential of booming aspects in term of market in it means a lot. In this blog we’ll cover in detail about the Public Company in Jaipur, its registration procedure, criteria and advantages.

What do you know about Public Company?

A Public Company is a company in which ownership is distributed to general public shareholders through the free sale of stock shares over-the-counter at markets or on exchanges. Even if just a small fraction of shares are originally distributed to the public, the daily trading that occurs in the market determines the value of an entire company. It is referred to as “”public”” because the shareholders, who become equity owners of the company, can be any individual who purchases shares in the company.

A public company’s share’s is traded on an open market. Several investors purchase shares. Generally, public corporations began as private enterprises that turned public in order to obtain money after meeting all regulatory criteria.

Why should one prefer registration of Public Company in Jaipur ? 

Jaipur is the capital city of Rajasthan and one of the fastest growing cities of the world. As a result, many new startup companies are willing to invest here due to the favourable climatic conditions and the availability of  goods. Due to the strategic location and huge market of Jaipur, the pink city attracts many investors within Rajasthan and even outside the state. Jaipur is a suitable place because manufacturing, selling products and services all over the state and even outside can very easily take place.

Pros of Public companies in Jaipur 

• The company can sell its shares to the general public or to anyone who is willing to invest. This facilitates the company’s ability to raise capital.
• Although the company can be listed on the stock exchange market, many people can see what the company’s rating is, making it easier to attract more investors.
• The shares are easily transferable, allowing shareholders to profit from the corporation by comparing it to other companies and deciding to offer a few of their stocks when the prices are slightly higher.
• Financial institutions find it convenient to lend to public limited companies, particularly those that are listed on a stock exchange. Due to this, their accounting entries are always made available for the company’s house. However, the company can also have an advantage in negotiating favourable interest rates and loan repayment terms.
• It benefits the shareholder and provides great expansion opportunities.

Characteristics of forming Public Company in Jaipur

• Directors– According to the provisions of the Companies Act, 2013, to start a public company, there is a of need at least 3 minimum directors, and necessary, and there is no specific maximum number of directors  given
• Limited liability– Each shareholder has a limited liability. Shareholders of any public limited company are not personally responsible for any losses or debts of the company. However, if the amount is more than the invested amount, a public limited company does not offer any immunity to the shareholders. A shareholder can be held liable only for their own illegal actions. 
• Paid-up capitals – For the incorporation of a Public Limited Company they must have paid up capital of a minimum of Rs.5 lakh, and the maximum amount has no limits.
• Prospectus- A prospectus is a thorough assessment of the company’s affairs made available by a public company to its shareholders, and it is required by public limited companies to publish a prospectus. Private Limited Companies, on the other hand, do not have such measures. This is due to the fact that private limited companies cannot invite the general public to subscribe to their shares.
• Name– As per the Companies Act, 2013 , it is necessary for all  public companies to add the word “Limited” just after their company name. 

Criteria for the registration of a Public Limited Company  

According to the Companies Act, 2013 which prescribes various rules and regulations for registration of Public Limited Companies, 

• There should be a minimum of 7 shareholders to make a Public Limited Company. 
• There should be a minimum of 3 directors to form a Public company, and with a zero minimum capital share
• While submitting the attested copies of address proof and identity Digital signature certificate of any of the one director is necessary. 
• DIN is a must for the directors of the company. 
• An application is necessary for the selection of the name of the company. 
• An application consisting of the main information clause gives a brief description of what a company is going to pursue after its incorporation. 
• Submission of application to ROC with all the necessary documents. 
• Payment of the prescribed amount to the  ROC is a must and after getting  the assent  from the ROC , the company is necessary to apply for the “certificate of business of commencement”.

Procedure for Registration of a Public Limited Company 

•  Step1 :Get a Digital Signature Certificate (DSC): The registration is online. So, it is necessary for the sole purpose of filling a form on the MCA Portal. However,  DIC is compulsory for all the Directors , the subscribers of the memorandum and the articles of association.

• Step2: Director Identification Number for directors: DIN is a must for anyone who is willing to become a director of the company. It is put forward along with the name and address proof of the proposed director in the registration form.

• Step3: Registration on the official MCA Portal : To apply for company registration, you must submit a completed SPICe+ form to the MCA portal. The director of a company must register on the MCA portal in order to fill out the SPICe+ form and submit the appropriate papers. However, after completing the registration process, the director will have access to the MCA portal services. The MCA Portal includes the ability to file e-forms and examine public records.

• Step4: Final Certification : After completion of  the application, the Registrar of companies will scrutinise the application and, once verified the ROC will issue the certificate of incorporation.

Documents Requirement for registration 

• Identity proof of the shareholders and directors. 
• Address proof of all the shareholders and directors. 
• PAN Details of all the shareholders and directors.
• Utility Bill 
• An NOC from the owner of the land where the office is located. 
• DIN and DSC of all the directors. 
• Memorandum of Association and Articles of Association. 

Conclusion

Public Limited Company is the best option to start a business as it is ideal for raising capital from the market .Despite the fact that it has stricter regulation than in  Private Companies. This is more efficient for the company when the numbers of investors are more. These public companies offer it to the public at large. However, it is easily transferable in the market. Jaipur is a place that offers a huge market for the exchange of services and opportunities for companies to grow.

Furthermore, if you are looking to register your Public Company in Jaipur, feel free to contact us.