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

Overview of Public Limited Company registration in Dehradun, Uttarakhand

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 Dehradun, Uttarakhand.

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 Uttarakhand

Uttarakhand is officially known as Uttaranchal till 2007. Uttarakhand’s name is derived from the scriptures’ Sanskrit words, i.e., Uttara means ‘north’ and Khanda means ‘land.’In short means’ Northern Land’. As per the historical Hindu scriptures, Uttarakhand is a combined region of “Kedarkhand” (At present known as Garhwal) & “Manaskhand” (At present known as Kumaon). Uttarakhand is located in the northern part of India. Uttarakhand is also named “Devbhumi” (which means the Land of the Gods). It is named so because of its cultural and religious significance and due to the presence of various Hindu temples and pilgrimage sites found across the state. Uttarakhand is a well-known and enthralling tourist place, especially due to the natural environment of the Himalayas, the Bhabar, and the Terai regions.
This state shares its international boundaries with Tibet (an autonomous region of China) in the north, Nepal (Sudurpashchim Province) in the east, and National boundaries with Uttar Pradesh in the south and Himachal Pradesh in the west and northwest. Uttarakhand constitutes 86% mountainous and 65% covered area by forest. The Jim Corbett National Park(launched in 1973) is India’s oldest and most prestigious national park. This state ranks 20th in terms of the country’s population growth with the contribution of 0.83% of the population on 1.63% of the land. Demographically, various languages are spoken, but among them, the Hindi language is mainly spoken by the native people of Uttarakhand. However, based on place of origin in the Garhwal and Kumaon region, Garhwali and Kumaoni are also spoken, respectively.
Uttarakhand’s beauty is inherent in things like the huge mountains of the Himalayas, the sacred rivers, the spiritual regime, stunning and enchanting landscapes, the colorful resonating rhythms of nature, and exhilarating history molded in the ancient stones, a mesmerizing evergreen flora, and fauna. Hence, these things make Uttarakhand a perfect place for nature enthusiasts, mountaineers, bike riders, rock climbers, spiritually elevated fanatics, and many more. Apart from being an enthralling tourist spot, Uttarakhand is also blessed as a goldmine for anthropologists, historians, linguists, geologists, etc. In terms of economy, Uttarakhand is India’s 2nd fastest-growing state, and agriculture is one of the major contributing sectors of the economy of Uttarakhand.

Capital- Gairsain (Summer) and Dehradun (Winter)

Top Business Ideas in Uttarakhand
Uttarakhand is one of the best tourist destinations in North India. Uttarakhand is a highly exhilarating state and credible state to seek the attention of various investors and entrepreneurs. Thereby it attracts several opportunities to spend time in the lap of nature. Uttarakhand is well-known among the best Indian states on the kernel of providing ease of doing business. As per the latest records of the growth of the Uttarakhand manufacturing sector, it accounts for 33% of the State GSDP. Uttarakhand is ranked 1 in the list published by the Export Preparedness Index 2020.

Adventure Tourism Business
Uttarakhand is known for its great mountains of the Himalayas, elegant rivers, various holy pilgrimage sites, and many more. Due to this, it attracts many tourists and adventure enthusiasts interested in sports such as rock climbing, skiing, ice skating, sailing, parasailing, canoeing, yachting, trekking, mountaineering, kayaking, and hiking, and various other favorite adventure sports such as paragliding, skydiving, rafting, and bungee jumping. You can develop an adventure sports business idea to utilize this potential of Uttarakhand, and this is a lucrative business idea with a promising future.

Fish Farming Business
Fish Farming is an essential contributor to the economy of Uttarakhand. Besides the agriculture and tourism industries, Fish farming is also an integral part of the state’s economy. Some of the most in-demand and grown fishes are Mulley, Monstrous Goonch, Tangra, Indian Trout, Butchwa, etc. Hence, this fishing business requires specialized knowledge, necessary skills, and careful monitoring skills. This commercial fish farming business is gradually increasing its business venture globally.

Restaurant Business Idea
Uttarakhand is a place for nature lovers and adventure enthusiasts. Hence, it considerably aggregates India’s most famous hill stations such as Mussorie, Nainital, Dhanaulti, Lansdowne, Sattal, Almora, Kausani, Bhimtal, Pauri, and Ranikhet. Apart from this, Uttarakhand has 12 National Parks and Wildlife Sanctuaries, such as Jim Corbett National Park(2nd oldest), Rajaji National Park, Nanda Devi National Park, Gangotri National Park, Valley of Flowers National Park, etc. These national parks and wildlife sanctuaries comprise 13.8 percent of the state’s total area. Here, you can set up a restaurant with the essence of regional inclusion of food specialty to serve the tourists (native and foreign) as well as the local people. First, set up a small business at a specific tourist hotspot, then stretch the reach to different stations as productivity blooms.

Startup Ecosystem in Uttarakhand
The Uttarakhand state has tipped the performance of India’s growth in the startup ecosystem by providing immense opportunities, incentives, and credible support to the startups. The citizens and the inhabiting students are inspired to lead this entrepreneurship, and the state of Uttarakhand regularly provides alternative endeavors to create a productive environment for innovative and creative business ideas.
The major benefit aspect is that the state is providing the ease of doing business which is supported by various vital institutions, including government departments, namely the Directorate of Industries at the state level and the District Industries Centers (DIC) at the district level is set up to cultivate business reforms and ideas in Uttarakhand. Besides this, The State industrial Development Authority (SIDA) holds the obligation of regulating, controlling, and providing a sustainable industrial development parameter in the state to maintain the decorum of uniformity, stability, and harmony.
As well as prominent educational institutions like the Indian Institute of Technology – Roorkee, Indian Institute of Management (IIM)- Kashipur, and National Institute of Technology (NIT) provide a platform for students to evolve as entrepreneurs. The State of Uttarakhand published its Startup Policy in 2018 and purposefully replaced the policy broadcast in 2017. This Uttarakhand Startup policy focuses on areas that benefit the state’s entrepreneurs in finding the best business ideas and promoting investment in incubation and startups. The state has established a body known as the startup council, which comprises the primarily selected members from government and private backgrounds, to monitor, regulate, maintain and implement the Startup Uttarakhand Initiative. The purpose or vision of this initiative is to stimulate the ecosystem to feed the spirit of entrepreneurship in the state.

Salient Features of a Public Limited Company registered in Dehradun, Uttarakhand

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 Dehradun, Uttarakhand

There are several differences between a private & Public Limited Company registered in Dehradun, Uttarakhand 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 Dehradun, Uttarakhand

Step 1-Obtain DSC for the proposed Company in Dehradun, Uttarakhand

As a first step towards registration in Dehradun, Uttarakhand, 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 Dehradun, Uttarakhand

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 Dehradun, Uttarakhand

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 Dehradun, Uttarakhand

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 Dehradun, Uttarakhand

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 Dehradun, Uttarakhand

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 Dehradun, Uttarakhand

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 Dehradun, Uttarakhand

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 Dehradun, Uttarakhand

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 Dehradun, Uttarakhand

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 Dehradun, Uttarakhand

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 Dehradun, Uttarakhand

Therefore, a Public Limited Company registered in Dehradun, Uttarakhand 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.