Public Limited Company Registration Process in Rajasthan

Are you embarking on a journey to establish your dream setup of a Public Limited Company in Rajasthan? We will ensure that your journey ends smoothly. Rajasthan welcomes entrepreneurs with open arms, offering a seamless path to establishing a Public Limited Company. A public limited company is a type of business entity that offers its shares to the general public. It is governed by specific regulations and laws designed to protect shareholders and ensure transparency in its operations.  In this article, we will discuss the Public Limited Company registration in Rajasthan.

What is a Public Limited Company?

Firstly let us deal with the meaning of the term ‘Public Limited Company’. A Public Limited Company guarantees limited liability to its members and owners. The main advantage of incorporating this type of entity is that a public limited company is free to raise funds from the public by following certain norms and regulations which brings benefits in raising capital. Although the regulatory requirements are much stricter than a Private Limited Company.

It can be formed by seven members and three directors without minimum capital requirements. It is advantageous to start such a company when the investors are large and include the general public. The shares of this type of entity are freely transferable on the market. It uses the basic features and benefits provided by the Companies Act 2013 such as separate legal entity and limited liability.

Benefits of Public Limited Company Registration in Rajasthan

The benefits of Public Limited Company registration in Rajasthan are-

• Additional capital: Shares are offered to the general public, allowing anyone to invest in the company, and bring additional capital to the company.
• Increased popularity: Stock exchange listing increases the popularity of Public Limited Company business among traders of mutual funds, hedge funds, etc., which further opens up possibilities for business opportunities for the company.
• Brand visibility: Public Limited Companies often enjoy higher brand visibility and recognition in the market. Being a publicly limited company can increase public awareness and attract media attention, leading to a better brand reputation and customer trust. This visibility can also facilitate partnerships, collaboration, and customer acquisition.
• Shared risk: Market risk is distributed with the allocation of shares to the general public in bulk.
• Success and business expansion: Shared risk, increased publicity, and additional capital together lead to opportunities for business expansion and success and investment in new profitable projects.
• Limited liability: One of the main advantages of a Public Limited Company is limited liability for its shareholders. Shareholders’ assets are protected and their liability is generally limited to the amount they have invested in the company. This separation of personal and business assets provides shareholders with a level of financial security.

Why choose Rajasthan for establishing a Public Limited Company?

Well, most of you must be wondering about the reasons for establishing a Public Limited Company in Rajasthan. Some of the reasons are-

• Strategic Location: Located in the heart of India, Rajasthan is strategically located with excellent connectivity to major cities and ports. This facilitates easy access to markets across the country and enables efficient distribution of goods and services.
• Vibrant Economy: Rajasthan boasts of a diverse and growing economy. It has thriving industries such as tourism, textiles, handicrafts, agriculture, mining, renewable energy, and information technology. The state offers an enabling environment for businesses to flourish and tap into various industrial opportunities.
• Investor Friendly Policies: Rajasthan has introduced investor-friendly policies and initiatives to encourage business growth. The state government has introduced reforms to simplify regulatory processes, provide infrastructure support and offer incentives to industries, making it an attractive destination for investment.
• Rich Natural Resources: Rajasthan is rich in natural resources including minerals, limestone, marble, and granite. This availability of raw materials is beneficial to industries that require these resources, such as construction, mining, and manufacturing.
• Skilled Manpower: The state has a large number of skilled and semi-skilled workers. Educational institutions and training centers in Rajasthan are creating a skilled workforce to cater to the needs of various industries. This availability of talent contributes to the success of businesses in the state.

Minimum Requirements for a Public Limited Company

The minimum requirements for a Public Limited Company include-

• A minimum of three persons as directors and a maximum of fifteen
• At least seven people as members
• Minimum one director must be an Indian resident
• Digital signatures of subscribers and directors
• No minimum capital requirement
• Director identification number, if available.

Documents required for the Public Limited Company Registration in Rajasthan

The documents required for the Public Limited Company registration in Rajasthan are-

• Aadhar Card of all Directors/Subscribers
• PAN Card of all Directors/Subscribers
• DL/Voter ID/Passport, any document of all directors/subscribers
• Bank statement/electricity bill of all board members/subscribers
• Last utility bill to prove company address
• A lease agreement is required for the rented space.

Procedure for Public Limited Company Registration in Rajasthan

The procedure for Public Limited Company registration in Rajasthan is given below-

• Step 1: Reserve a name: The first step to registering a Public Limited Company in Rajasthan is to get approval for the desired company name. The name should be unique, should not infringe on any existing trademarks, and should comply with the regulations set by the Ministry of Corporate Affairs (MCA). You can apply for a name reservation online through the MCA portal. After successful name approval, it will be reserved for 20 days.
• Step 2: Obtaining Digital Signature Certificates (DSCs) and Director Identification Numbers (DINs): For registration, the company directors must obtain Digital Signature Certificates (DSCs) and Director Identification Numbers (DINs). DSCs are used to electronically sign registration documents, while DINs are unique identification numbers issued to directors. These can be obtained by submitting the necessary documents online.
• Step 3: Drafting the Memorandum of Association (MOA) and Articles of Association (AOA): The Memorandum of Association (MOA) and Article of Association (AOA) are essential documents that define the company’s objectives, scope of operations, and internal regulations. These documents must be prepared under the Companies Act 2013. Seek professional advice to ensure accuracy and compliance with statutory requirements.
• Step 4: Filing for registration: Once you have the name, DSC, DIN, and final MOA and AOA approved, you can proceed to apply for incorporation. For this purpose, the SPICe form (Simplified proforma for establishing a company electronically) is used. Along with the form, you must submit the necessary documents, such as proof of registered office address, identity documents of the executives, and declaration of compliance with legal requirements.
• Step 5: Payment of registration fees: Registration fees for the establishment of a Public Limited Company depend on the approved share capital. The MCA provides a fee calculator on its portal to help you determine the exact amount applicable to your company. Make the payment online through the portal and complete this step.
• Step 6: Obtaining the Incorporation Certificate: After successful application and payment of fees, the Registrar of Companies (ROC) will check the documents. The ROC will issue a certificate of incorporation if everything is in order. This certificate signifies the official existence of your Public Limited Company in Rajasthan.
• Step 7: Compliance requirements: After obtaining a certificate of incorporation, you must meet various compliance requirements to maintain your company’s legal status. This includes obtaining a Permanent Account Number (PAN) and a Tax Deduction and Collection Account Number (TAN) from the Income Tax Department. In addition, you must comply with legal obligations such as holding annual general meetings, filing annual accounts, and keeping proper records.

Final words

Starting a public limited company in Rajasthan involves a structured registration process. By following the steps outlined above and ensuring compliance with relevant laws and regulations, you can establish your business entity and reap the benefits associated with a public limited company structure. Seeking professional guidance from company secretaries or legal experts can simplify the process and ensure a smooth registration experience.

Register your dream venture in Rajasthan with us. In case of any query regarding the Public Limited Company registration in Rajasthan, a team of expert advisors from Legal Window is here to assist you at every step. Feel free to reach us at admin@legalwindow.in.