Public Limited Company Registration in Bhubaneswar, Odisha – Features, Difference, Process, Eligibility Criteria, Benefits, Disadvantages, Documents Required

Overview of Public Limited Company registration in Bhubaneswar, Odisha

Starting a business of your own may be a huge accomplishment for you to finally gather courage & take a leap of faith in the right direction regardless of its scale of operations. But, you would want to ensure that you choose a business structure that could offer maximum benefits for you and you might want to look for options to choose from. Accordingly, if a business entity will need huge capital investments, may opt to be registered as a Public Limited Company in Bhubaneswar, Odisha.

But, what is a Public Company? As per Section 2(71) of the Companies Act, 2013 a Public Company means a company that is not a private company. Further, a private company that is a subsidiary of a Public Company shall be deemed a Public Company.

In other words, a Public Limited Company is a company that doesn’t meet the definition of a private company i.e. it has at least seven members and at least three directors on its board and there is no upper ceiling for the maximum number of members as in the case of a private company.

Incorporation of a Public Limited Company with the Ministry of Corporate Affairs online portal grants legal recognition as well as affords all other privileges that are allowed to a body corporate such as limited liability, perpetual succession & a separate legal status. Not only this, a Public Limited Company is permitted by the law to raise capital from the public in general by listing their shares in a public stock exchange in India as well as from abroad.

However, since there is a larger amount of public interest involved in a Public Limited Company, it is often subject to more stringent compliances with many of the restrictive provisions of the Companies Act.

Public Limited Company in Odisha

Odisha is formerly known as Orissa till 2011. It is located in the Eastern part of our country. 1st April is observed as Odisha Day. It is the 8th largest state in terms of area and the 11th largest state in terms of population. Odisha is the 3rd largest in terms of scheduled tribes, and population in India. This state shares its boundaries with West Bengal and Jharkhand in the north, Chhattisgarh in the west, Andhra Pradesh in the south, and the Bay of Bengal (2nd largest subdivision of India after the Arabian Sea) in the east. The region is also popularly known as Utkala (Ancient name), and this name also has its imprint on India’s national anthem,” Jana Gana Mana”. Demographically, various languages are spoken in this state, but amongst them, Odia is majorly spoken by the native people.
Odisha is an attractive tourist destination of various architectural wonders. Odisha is infamous for its historical heritage sites and enchanting views. From beaches to pilgrimage and monuments, Odisha offers a plethora of enthralling endeavors to travelers who visit from all over the world. There are a ton of places to attract tourists like Puri (one of the char-dhams or four holy places for Hindus), Bhubaneshwar (the temple city of India), Chilika lake in puri (India’s largest brackish water lagoon), Jaganath Temple in puri (World famous chariot festival in the month of June-July), Konark Temple (UNESCO World Heritage Site), Rourkela (steel city of Odisha) and many more.
According to the survey conducted by Forest India in 2012, Odisha comprises 31.41% of the state’s total area. Due to the favorable climate conditions, Odisha’s moist and evergreen tropical forests are suitable ecosystems for wild orchids. Odisha consists of various national parks, wildlife sanctuaries, and bio reserves such as Simlipal National Park (the highest tiger population in the state), Chandaka Elephant Sanctuary, and Bhitarkanika National Park, etc. The backbone of Odisha lies in the villages and farmers. The state government initiated various innovative schemes to increase farm productivity like the Jeebika scheme, Digital Mandi Yojana, Mobile Veterinary Unit (1st state to organize animal health camps), Biju Krushak Yojana, and many more. During the crisis times, the state government sponsored the Indian hockey team, which led to remarkable achievements for the country through their spectacular performance in the Tokyo Olympics.
Capital- Bhubaneswar

Top Business Idea in Odisha
Odisha’s main economy relies on agricultural-based products, production, and cultivation. However, by the collaborative efforts of inhabitants and government, State is transiting into business strata. Odisha is becoming the best place for entrepreneurs as the government is providing the ease of doing business and other essential facilities. The main realms in which lucrative business models can be set up are tourism, hotels, restaurants, transport, communication, insurance services, and other financial profiles. Given below is the list of feasible and profitable business ideas with less investment that can be commenced on a small scale.

Candle-making business
This is the most affordable business with mere investment; investors or entrepreneurs can initiate this business model. To fulfill the high requirement of candles in the state candle making business is a good startup idea. Moreover, there are different types of candles available such as traditional white, decorative, scented, and many other types. Even the raw materials used for the candle-making process are easily available in the market.
At the initial stage, you can start making candles at your home and sell them locally. After that, get in touch with the wholesalers, grocery stores, vendors, and many other places where the demand is high. There is already a huge market for decorative candles as a gift item. Once you have started making good connections in the local market, This small investment that you have made will gradually lead you to a massive profit.

Cashew nut processing business
The cashew nut processing business is a profitable and cost-effective business that can be initiated with a small investment. As we know, Orissa is a famous state for cashew nut production, so there is a high demand for cashew nuts in Odisha. First, let’s understand the market before starting the business. Cashew nuts need proper processing and finishing it is necessary as people do not consume raw cashew nuts. Day by day, people are getting more health-conscious, so they demand proper process cashews which contain multiple health benefits. But as per the demand for the cashew nuts, the supply of cashew nuts is not up to the mark. Therefore, before starting the business of cashew nuts, choose a preferred location where you can get raw materials. The small-scale business in providing a handsome salary.

Jute bag-making business
If you want to open a small-scale business, then preferably, a jute bag-making business is the best. Odisha is popular for jute production. Jute has significance in our daily lives, such as in the form of jute bags, chairs, tables, and many more. Hence has always been an integral part of our daily life. It can be a productive and cost-effective business if the raw materials are used effectively. From the business perspective, it requires a small investment, but you can earn a lot of money through its outcome. You can quickly start this business in Odisha as jute has been an integral part of our daily lives and is easily available all over the state.

Startup Ecosystem in Odisha
Over the past few years, several initiatives have been implemented by the Government of Odisha, and these Initiatives have majorly impacted the ease of doing business in Odisha. TheDepartment for Promotion of Industry and Internal Trade (DPIIT) has ensured that the state has a vibrant startup ex. Startup Odisha is the state’s prominent initiative to create a favorable ecosystem for the startup to aspire and flourish.
State provides the firm financial support for the investors or entrepreneurs for establishing both public and private institutions. Even the state has extended its support to the universities by conducting various training programs for the faculties to equip them in the region of entrepreneurship and innovation. The state has also planned to create an annual campaign named the startup Odisha Yatra. The main aim of this platform is to inspire and educate the students, innovators, and entrepreneurs of remote areas to realize the importance of entrepreneur goals which will be encouraging for the future of our state.
Let’s talk about the financial aid provided to the startups. The Odisha youth innovation award gives an amount of ₹ 50000/- for thinking of an innovative business idea, ₹ 1 lakh at the prototype stage, and INR 3 lakh at the scale-up stage to a large number of startups every year.

Salient Features of a Public Limited Company registered in Bhubaneswar, Odisha

Number of Directors

Unlike a One Person Company or a private limited company, the primary requisite for starting a public limited company which will need at least three directors with no upper ceiling for the maximum number of directors.

Body Corporate

Since a Public Limited Company is a body corporate it enjoys limited liability, perpetual succession, and a separate legal status apart from its members in the eyes of law. Accordingly, in the event of debts or losses, the liability of any member could not go beyond his agreed contribution which is unlike in the case of a partnership firm or a sole proprietorship firm where the partners and business owners are jointly and severally liable for the debts of the business.

Paid up Capital

To start a Public Limited Company, there must be a minimum paid-up capital of Rs. Five or any higher amount prescribed by the Government under the Act.

Addition of word ‘Limited’ with name

Unlike a private company, which adds a ‘private limited’ after its name, every Public Limited Company must add ‘Limited’ after its name in every official publication.

Difference between Private & Public Limited Company registered in Bhubaneswar, Odisha

There are several differences between a private & Public Limited Company registered in Bhubaneswar, Odisha which have their own advantages & disadvantages in each of them. Hence, every entrepreneur may choose their business structure before establishing their company by analyzing each concept in depth. The primary differences have been provided below-

Process of Public Limited Company Registration Online in Bhubaneswar, Odisha

Step 1-Obtain DSC for the proposed Company in Bhubaneswar, Odisha

As a first step towards registration in Bhubaneswar, Odisha, the company should first obtain a class 3 category digital signature certificate from a government-recognized certifying authority available online, which takes around one or two days. DSC is the most important part of filling incorporation application online with MCA as it enables the company to e-verify its documents & attachments online.

Step 2- Make an application for allotment of DIN in Bhubaneswar, Odisha

Next, at least three directors of the proposed directors of the Public Limited Company will be required to obtain DIN to become directors of the company. Basically, there are two ways to apply DIN from the MCA portal-

i. File a separate application for DIN allotment through DIR-3 in Bhubaneswar, Odisha

The Form DIR-3 is an e-form filed for the purpose of making an application online for the allotment of DIN for a single individual director who wishes to become a director in an existing company. To file this form, proof of identification such as PAN, Aadhaar Card, etc, and address proof of the proposed director are required.

ii. Apply for DIN through the incorporation form SPICe+ in Bhubaneswar, Odisha

From 23.02.2020, the proposed director of a new company who is going to become a director for the first time could apply for DIN allotment within the SPICe+ form for up to three directors and doesn’t need to file the form separately.

Step 3-File the multipurpose form SPICe+ for incorporation in Bhubaneswar, Odisha

The SPICe+ form for the incorporation of a new company which came into effect on 23 February 2020, is a multi-purpose web-based application that not only facilitates the incorporation of the company but also offers facilities in two parts A & B for –

• Application for allotment of DIN (up to three directors)
• Reservation of company name (RUN)
• Application for PAN and TAN (mandatory)
• Application for EPFO registration (mandatory)
• Application for ESIC registration (mandatory)
• Application for Professional tax registration (for Maharashtra only)
• Application for opening a bank account (mandatory to file)
• Allotment of the GST identification number (GSTN)

To start the process of incorporation, all these e-forms have to be downloaded in PDF format, filled & signed digitally, and submitted online. Further, the user has also to download & fill SPICe+ form and affix a digital signature followed by a certification of the fulfillment of all compliances from a professional such as CA/CS or CMA. There is no fee applicable for the incorporation of a company with less than 10Lakhs of authorized capital.

Step 4- Filling & Submission of MOA & AOA in Bhubaneswar, Odisha

Next, the proposed company needs to file the drafted Memorandum of Association (MOA) & the articles of association (AOA) of the company in e-format. Memorandum & Articles of Association which represent the primary charter of the company as well as its bye rules for internal organization. The format for MOA & AOA has been prescribed in the form e-MoA (INC-33) and e-AoA (INC-34) respectively. After putting digital signatures by the subscribers to the Memorandum and Articles of Association, they could be submitted.

Earlier, the MOA & AOA needed to be filed physically, but now these have also been integrated with the incorporation form SPICe+.

Step 5-Approval & Getting COI in Bhubaneswar, Odisha

After submission of the SPICe+ form along with all required documents & attachments, the MCA authority will carry out verification of the documents & on being assured of its genuine, may issue the Certificate of Incorporation which contains a unique CIN number along with PAN & TAN number & other unique identification numbers as allotted after approval of the SPICe+ Form by way of an email on the registered e-mail address.

Eligibility Criteria for Public Limited Company Registration in Bhubaneswar, Odisha

i. Minimum amount of shareholders & directors- To start a Public Limited Company, the company needs to have at least seven members who subscribe to the Memorandum of Association of the company and at least three directors on its board. Though, there are no restrictions regarding the maximum number of directors or members a Public Limited Company can hold.

ii. Resident Director-The another requirement to start a Public Limited Company in India is having at least one resident director i.e. who has resided for at least 182 days during the immediately preceding year irrespective of their citizenship, who will be primarily responsible for the compliance of the company. It is to be noted that the number of days required for the calculation of 182 days could be in phases.

iii. Registered Office Address-Every Public Limited Company should have a temporary address at the time of registration of the company for communication purposes. Further, within a period of 30 days, the company needs to have a registered office address and proof of address must be submitted online.

iv. Unique Name of Company– For the purpose of eligibility, the company so proposed should be unique i.e. it should not be too closely similar to any already existing business and should not be a name in violation of the National Emblems Act 1950. The name of the company should suggest its business objectives which could be either a single objective or a multifaceted object.

v. Legal Object– The proposed company shall also have a legal object of business for its incorporation and not for any illegal purpose or posing any not misuse or harm the society, which should be described in the object clause of the Memorandum of Association (MOA) of the company.

vi. DIN for all Directors- As provided under sections 153 and 154 of the Companies Act, 2013, the Director Identification Number is a unique number mandatorily required to be obtained by a director in a company by making an application to MCA in e-form DIR-3.  However, for a first-time director for a new company, an application for DIN allotment could be made along with the incorporation form SPICe with MCA.

vii. Digital Signature Certificate (DSC)-Since all the documents & attachments have to be filed online, it will be mandatory for the directors of the Public Limited Company to obtain a DSC. A DSC helps to verify the authenticity of filling documents filed & submitted during incorporation and thereafter.

viii. Certificate of Compliance– After all the documents are drafted & prepared, the prospective Public Limited Company will need to obtain a certificate of compliance from a professional such as a CA/CS/CMA, that all the declarations for incorporation of a Public Limited Company have been genuinely made.

Benefits of Public Limited Company Registration in Bhubaneswar, Odisha

i. Limited Liability- Unlike a partnership firm, a Public Limited Company is a legal person whose assets& liabilities are separate from its members and thus the members of the company have limited liability towards the debts of the company, which cannot go beyond their agreed contribution to the capital of the company made by them in correspondence to the nominal value of their shares.

ii. Transparent & trustworthy– Since there is a larger public interest involved in a Public Limited Company in the form of investment, hence it is subject to higher compliances such as fillings of financial statements & annual returns, the Government demands more transparency from such companies in the form of compliances and intimations about changes from time to time.

iii. Easier Transfer of Shares- As per the provisions of the Companies Act 2013, the members in a Public Limited Company have no maximum limit, thus the shares of a Public Limited Company could be easily transferred from one person to the other. Especially for listed public companies, the prices of shares are quoted on a stock exchange, thus it is easier for anyone to sell or buy shares in the company

iv. Perpetual Succession– Unlike a partnership firm, a Public Limited Company enjoys perpetual succession, which means irrespective of the events like death, insolvency or any disability of its partners shall not affect its legal status. It continues to live until & unless it is legally dissolved through the prescribed procedures.

v. Ease to raise funds- A Public Limited Company having more members than any other business entity has access to more capital which also helps them in obtaining loans from banking & financial institutions and even from investors who join as a shareholder. Due to this, they can even enter negotiations to demand favorable rates of interest and conditions for repayment of loans. Additionally, a Public Limited Company can also offer debt securities for the purpose of extra funds for business expansion purposes.

vi. Better Growth and Expansion Opportunities-Compared to any other business entity, a Public Limited Company has several sources of gaining capital such as the fresh issue of shares, issue of debt securities, and loans from banks & financial institutions, there is always a strong probability of strong market presence and growth opportunities. Thus, it is significantly easier for a Public Limited Company to expand its business operations and get growth opportunities as compared to entities like private companies or LLPs who have to work relatively harder to raise funding or get investments.

Disadvantages of a Public Limited Company registered in Bhubaneswar, Odisha

1. Higher cost of Compliances– As aforementioned, in the case of a Public Limited Company, there is more public interest attached to the business management decisions and their consequences. Accordingly, it has to fulfill more compliances than other business entities, and hence there are higher costs of compliances.
2. Problems with Decision Making- Unlike a private company, where the number of members is limited, the number of shareholders is significantly larger, and no key decision related to the business could be made without the approval of shareholders. Thus, for making any business decision, the board of directors has to lay it in front of the shareholders and pass a resolution for carrying matters forward, which takes a longer time & effort.

Documents Required For Public Limited Company registration in Bhubaneswar, Odisha

i. Proof of Identification of all the proposed members and directors;

ii. Proof of residence of all the proposed directors and shareholders.

iii. Address Proof for the proposed registered address of the company such as utility bills.

iv. PAN Card of the proposed members;

v. In case the office property is rented, a NOC from the owner of the property

vi. Copy of proposed memorandum & articles of association of the company;

vii. DSC (Digital Signature Certificate) & DIN (Director Identification Number) of all the proposed directors.

Conclusion of Public Limited Company registration in Bhubaneswar, Odisha

Therefore, a Public Limited Company registered in Bhubaneswar, Odisha is a business entity that allows benefits of better funding & growth opportunities for entrepreneurs, which could be incorporated by following a simple and convenient process. So, get your company incorporated and start your journey today.