Lucknow Consultant

Public Company registration

Public Company registration in Lucknow, Uttarpradesh– A public company is a type of business entity that is authorized to offer shares of stock to the general public. In Lucknow, public companies are governed by the Companies Act, 2013. The act lays down the legal framework for the formation, registration, and dissolution of public companies in Lucknow. In this blog post, we will discuss the process of public company registration in Lucknow, the types of public companies that can be registered, the advantages and disadvantages of public companies, the legal provisions and the list of documents required for public company registration.

Process of Public Company Registration: The process of registering a public company in Lucknow can be quite complex and time-consuming. The following is a general outline of the process:

  1. Choose a business name: The first step in registering a public company is to choose a unique business name. The business name must not be similar to any existing registered company and must not contain any offensive or prohibited words.
  2. Obtain Digital Signature Certificates (DSC) and Director Identification Number (DIN): Before filing the incorporation documents, the proposed directors of the company must obtain DSC and DIN.
  3. File the incorporation documents: The next step is to file the incorporation documents, such as the Memorandum of Association and the Articles of Association, with the Registrar of Companies (ROC) in the state where the company will be registered.
  4. Obtain PAN and TAN: After the incorporation documents have been filed and the company has been registered, the company must obtain a Permanent Account Number (PAN) and a Tax Deduction and Collection Account Number (TAN).
  5. Register for GST: If the company’s turnover is more than 20 Lakhs, then it is mandatory to register for GST.
  6. Obtain other licenses: Depending on the nature of the business, the company may also need to obtain other licenses and permits, such as a factory license or a professional license.
  7. File for Initial Public Offer (IPO) : After the company registration process is completed, a public company has to file for IPO to invite the public to subscribe to its share capital.

Types of Public Companies:

  1. Listed Company: A company that has been listed on a stock exchange and whose shares are traded on the exchange.
  2. Unlisted Company: A company that is not listed on a stock exchange and whose shares are not traded on the exchange.

Advantages of Public Companies:

  1. Access to capital: Public companies have access to a large pool of capital through the sale of shares to the general public.
  2. Increased liquidity: The shares of a public company are traded on a stock exchange, which increases the liquidity of the shares.
  3. Greater visibility: Public companies have greater visibility in the marketplace, which can lead to increased brand recognition and customer loyalty.
  4. Potential for high returns: Public companies have the potential to generate high returns for shareholders through the appreciation of the share price.

Disadvantages of Public Companies:

  1. Increased regulatory compliance: Public companies are subject to a greater degree of regulatory compliance, which can be costly and time-consuming.
  2. Loss of control: Shareholders have a say in the management and direction of the company through voting rights, which can lead to a loss of control for the original founders or management team.
  3. Disclosure requirements: Public companies are required to disclose financial and other information to the public, which can lead to loss of privacy.
  4. Short-term focus: Public companies may be pressured to focus on short-term financial results, rather than long-term growth and sustainability.

A public limited company is a type of business organization in Lucknow that offers many benefits such as the ability to raise capital through the sale of shares to the public, limited liability for shareholders, and greater stability and continuity of business. However, the process of registering a public limited company in Lucknow is more complex and time-consuming compared to other forms of business organization. In this article, we will take a detailed look at the process of registering a public limited company in Lucknow, including the required documents and procedures.

The first step in registering a public limited company is to obtain a Digital Signature Certificate (DSC) and Director Identification Number (DIN) for each of the proposed directors. The DSC and DIN can be obtained online through the Ministry of Corporate Affairs (MCA) website. It’s important to note that at least three directors are required to form a public limited company, and at least seven shareholders are required to subscribe to the Memorandum of Association (MOA).

Once the DSC and DIN have been obtained, the next step is to apply for name approval for the proposed company. The proposed name must be unique and not already in use, and it should also comply with the guidelines set out by the MCA. The name approval process can also be done online through the MCA website, and it usually takes about 7-10 days.

After obtaining the name approval, the next step is to file the incorporation documents with the Registrar of Companies (ROC). These documents include the Memorandum of Association (MOA) and the Articles of Association (AOA), which set out the company’s objectives and rules and regulations. The MOA and AOA must be signed by all the subscribers (i.e. shareholders) and witnessed by at least one person.

In addition to the MOA and AOA, public limited companies are also required to file a declaration of compliance with the Registrar of Companies. The declaration of compliance must be signed by a company secretary or a director, and it must be filed within 30 days of the company’s incorporation.

Once the incorporation documents have been filed, the ROC will issue a certificate of incorporation, which is proof that the company has been legally registered. It’s important to note that the process of registering a public limited company can take several weeks, and it’s important to ensure that all the documents are complete and accurate, as any errors or omissions can cause delays in the registration process.

After the registration process, a public limited company must also comply with several ongoing compliance requirements, such as holding annual general meetings, filing annual returns, and maintaining accurate financial records. Additionally, a public limited company must also comply with the listing regulations of the Securities and Exchange Board of Lucknow (SEBI) if it wants to list its shares on a stock exchange.

One of the key requirements for listing on a stock exchange is that the public limited company must have a minimum paid-up capital of INR 5 crore and a minimum public shareholding of 25%. Additionally, the company must also appoint a merchant banker to assist with the listing process and to ensure that the company is compliant with all relevant regulations.